THE EMPLOYEE’S COMPENSATION ACT, 1923 
____________ 

ARRANGEMENT OF SECTIONS 
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CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 

CHAPTER II 

EMPLOYEE’S COMPENSATION 

3.  Employer’s liability for compensation. 
4.  Amount of compensation. 
4A. Compensation to be paid when due and penalty for default. 
5.  Method of calculating wages. 
6.  Review. 
7.  Commutation of half-monthly payments. 
8.  Distribution of compensation. 
9.  Compensation not to be assigned, attached or charged. 
10.  Notice and claim. 
10A. Power to require from employers statements regarding fatal accidents. 
10B. Reports of fatal accidents and serious bodily injuries. 
11.  Medical examination. 
12.  Contracting. 
13.  Remedies of employer against stranger. 
14.   Insolvency of employer. 
14A. Compensation to be first charge on assets transferred by employer. 
15.  Special provisions relating to masters and seamen. 
15A. Special provisions relating to captains and other members of crew of aircrafts. 
15B. Special provisions relating to employees abroad of companies and motor vehicles. 
16.  Returns as to compensation. 
17.  Contracting out. 
17A.Duty of employer to inform employee of his rights. 
18.  [Repealed.]. 
18A. Penalties. 

CHAPTER III  

COMMISSIONERS 

19.  Reference to Commissioners. 
20.  Appointment of Commissioners. 
21.  Venue of proceedings and transfer. 
22.  Form of application. 
22A. Power of Commissioner to require further deposit in cases of fatal accident. 

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SECTIONS 

23.  Powers and procedure of Commissioners. 
24.  Appearance of parties. 
25.  Method of recording evidence. 
25A. Time limit of disposal of cases relating to compensation. 
26.  Costs. 
27.  Power to submit eases. 
28.  Registration of Agreements. 
29.  Effect of failure to register agreement. 
30.  Appeals. 
30A. [Omitted.]. 
31.  Recovery. 

CHAPTER IV 

RULES 

32.  Power of the State Government to make rules. 
33.  [Repealed.]. 
34.  Publication of rules. 
35.  Rules to give effect to arrangements with other countries for the transfer of money paid as 

compensation. 

36.  Rules made by Central Government to be laid before Parliament. 

SCHEDULE I.—LIST OF INJURIES DEEMED TO RESULT IN PERMANENT TOTAL 

DISABLEMENT. 

SCHEDULE II.—LIST OF PERSONS WHO, SUBJECT TO THE PROVISIONS OF SECTION 2 

(1) (nn),’ ARE INCLUDED IN THE DEFINITION OF EMPLOYEES. 

SCHEDULE III.—LIST OF OCCUPATIONAL DISEASES. 

SCHEDULE IV.—FACTORS FOR WORKING OUT LUMP SUM EQUIVALENT OF 

COMPENSATION AMOUNT IN CASE OF PERMANENT DISABLEMENT 
AND DEATH. 

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THE EMPLOYEE’S COMPENSATION ACT, 1923 
ACT No. 8 OF 19231 

[5th March, 1923] 
An Act to provide for the payment by certain classes of employers to their  2[employees] of 

compensation for injury by accident. 

WHEREAS  it  is  expedient  to  provide  for  the  payment  by  certain  classes  of  employers  to  their 

3[employees] of compensation for injury by accident; It is hereby enacted as follows:—  

CHAPTER I 

PRELIMINARY 

1.  Short  title,  extent  and  commencement.—(1)  This  Act  may  be  called  the  4[Employee’s] 

Compensation Act, 1923. 

5[(2) It extends to the whole of India 6***.] 

(3) It shall come into force on the first day of July, 1924. 

2. Definitions.—(1) In this Act, unless there is anything repugnant in the subject or context,— 

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* 

* 

(b)  “Commissioner”  means  a  Commissioner  for  Workmen’s  Compensation  appointed  under 

section 20; 

(c) “compensation” means compensation as provided for by this Act; 

8[(d) “dependant” means any of the following relatives of a deceased 9[employee], namely:— 

(i)  a  widow,  a  minor  10[legitimate  or adopted]  son,  and  unmarried  10[legitimate or  adopted] 

daughter, or a widowed mother; and 

(ii) if wholly dependent on the earnings of the 9[employee] at the time of his death, a son or a 

daughter who has attained the age of 18 years and who is infirm; 

(iii) if wholly or in part dependent on the earnings of the 9[employee] at the time of his death, 

(a) a widower, 

(b) a parent other than a widowed mother, 

1. This Act has been extended to— 

(1)Goa, Doman and Diu by Reg. 12 of 1962, s. 3 and Sch. (w.e.f. 15-8-1963); 
(2) Dadra cud Nagar Haveli by Reg. 6 of 1963, s. 2 and Sch. I; 
(3) Pondicherry by Reg. 7 of 1963, s. 3 and Sch. I; and 
(4) Laccadive, Minicoy and Amindivi Islands by Reg. 8 of 1965, s. 3 and Sch. 

This Act has been modified in its application to apprentices under the Apprentices Act, 1961 (52 of 1961) by s. 16 and to that 
Act. 
2. Subs. by Act 45 of 2009, s. 2, for “workmen” (w.e.f. 18-1-2010 ) 
3. Subs. by s. 3, ibid., for “workmen” (w.e.f. 18-1-2010). 
4. Subs. by s. 4, ibid., for “Workmen’s” (w.e.f. 18-1-2010 ) 
5. Subs. by the A. O. 1950, for sub-section (2). 
6. The words “except the State of Jammu and Kashmir” omitted by Act 51 of 1970, s. 2 and Schedule (w.e.f. 1-9-1971). 
7. Clause (a) omitted by Act 8 of 1959, s. 2 (w.e.f. 1-6-1959). 
8. Subs. by s. 2, ibid., for the clause (d) (w.e.f. 1-6-1959). 
9. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f. 18-1-2010) 
10. Subs. by Act 30 of 1995, s. 2 for “legitimate” (w.e.f. 15-9-1995). 

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(c) a minor illegitimate son, an unmarried illegitimate daughter or a daughter 

1[legitimate or illegitimate or adopted] if married and a minor or if widowed and a minor, 

(d) a minor brother or a unmarried sister or a widowed sister if a minor, 

(e) a widowed daughter-in-law, 

 (f) a minor child of a pre-deceased son, 

(g) a minor child of a pre-deceased daughter where no parent of the child is alive, or 

(h) a paternal grandparent if no parent of the 2[employee]is alive.] 

3[Explanation.—For 

items  (f)  and  (g)  of  
the  purpose  of  sub-clause  (ii)  and 
sub-clause  (iii),  references  to  a  son,  dauthter  or  child  include  an  adopted  son,  daughter  or 
child respectively; 

4[(dd) “employee” means a person, who is— 

(i)  a  railway  servant  as  defined  in  clause  (34)  of  section  2  of  the  Railways  Act,  1989 
(24 of 1989), not permanently employed in any administrative district or sub-divisional office of 
a railway and not employed in any such capacity as is specified in Schedule II; or  

(ii) (a) a master, seaman or other member of the crew of a ship,  

(b) a captain or other member of the crew of an aircraft, 

(c)  a  person  recruited  as  driver,  helper,  mechanic,  cleaner  or  in  any  other  capacity  in 

connection with a motor vehicle, 

(d)  a person recruited for work abroad by a company,  

and  who  is  employed  outside  India  in  any  such  capacity  as  is  specified  in  Schedule  II  and  the 
ship, aircraft or motor vehicle, or company, as the case may be, is registered in India; or 

(iii)  employed  in  any  such  capacity  as  is  specified  in  Schedule  II,  whether  the  contract  of 
employment  was  made  before  or  after  the  passing  of  this  Act  and  whether  such  contract  is 
expressed or implied, oral or in writing; but does not include any person working in the capacity 
of a member of the Armed Forces of the Union; and any reference to any employee who has been 
injured shall, where the employee is dead, include a reference to his dependants or any of them;] 

(e) “employer” includes anybody of persons whether incorporated or not and any managing agent 
of  an  employer  and  the  legal  representative  of  a  deceased  employer,  and,  when  the  services  of 
a2[employee]  are  temporarily  lent  or  let  on  hire  to  another  person  by  the  person  with  whom  the 
2[employee] has entered into a contract of service or apprenticeship, means-such other person while 
the 2[employee] is working for him; 

(f)  “managing  agent”  means  any  person  appointed  or  acting  as  the  representative  of  another 
person for the purpose of carrying on such other person’s trade or business, but does not include an 
individual manager subordinate to an employer; 

1. Subs. by Act 30 of 1995, s. 2, for “legitimate or illegitimate” (w.e.f. 15-9-1995). 
2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f. 18-1-2010). 
3. Ins. by Act 30 of 1995, 2 (w.e.f.15-9-1995). 
4. Ins. by Act 45 of 2009, s. 6 (w.e.f. 18-1-2010). 

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1[(ff) “minor” means a person who has not attained the age of 18 years;] 

(g)  “partial  disablement”  means,  where  the  disablement  is  of  a  temporary  nature,  such 
disablement  as  reduces  the  earning  capacity  of  a  2[employee]  in  any  employment  in  which  he  was 
engaged at the time of the accident resulting in the disablement, and, where the disablement is of a 
permanent nature, such disablement as reduces his earning capacity in every employment which he 
was capable of undertaking at that time: provided that every injury specified 3[in Part II of Schedule I] 
shall be deemed to result in permanent partial disablement; 

(h) “prescribed” means prescribed by rules made under this Act; 

(i) “qualified medical practitioner” means any person registered  4* * * under any  5[Central Act, 
Provincial Act or an Act of the Legislature of a 6[State]] providing for the maintenance of a register of 
medical  practitioners,  or,  in  any  area  where  no  such  last-mentioned  Act  is  in  force,  any  person 
declared by the State Government, by notification in the Official Gazette, to be  a qualified medical 
practitioner for the purposes of this Act; 

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* 

* 

(k) “seaman” means any person forming part of the crew of any 8* * * ship, but does not include 

the master of9[the] ship; 

(l) “total disablement” means such disablement, whether of a temporary or permanent nature, as 
incapacitates  a2[employee]  for  all  work  which  he  was  capable  of  performing  at  the  time  of  the 
accident resulting in such disablement: 

10[Provided that permanent total disablement shall be deemed to result from every injury specified 
in  Part  I  of  Schedule  I  or  from  any  combination  of  injuries  specified  in  Part  II  thereof  where  the 
aggregate  percentage  of  the  loss  of  earning  capacity,  as  specified  in  the  said  Part  H  against  those 
injuries, amounts to one hundred per cent.’ or more;] 

(m)  “wages”  includes  any  privilege  or  benefit  which  is  capable  of  being  estimated  in  money, 
other than a travelling allowance or the value of any travelling concession or a contribution paid by 
the employer of a2[employee] towards any pension or provident fund or a sum paid to a2[employee] to 
cover any special expenses entailed on him by the nature of his employment; 

11* 

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* 

(2) The exercise and performance of the powers and duties of a local authority or of any department 
12[acting  on  behalf  of  the  Government]  shall,  for  the  purposes  of  this  Act,  unless  a  contrary  intention 
appears, be deemed to be the Trade or business of such authority or department. 

1. In the application of the Act to Bengal, a new clause (ff) has been ins, here by the Workmen's Compensation (Bengal 

Amendment) Act, 1942 (Ben. 6 of 1942), s. 3. 

2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010 ) 
3. Subs. by Act 64 of 1962, s. 2, for “in the First Schedule” (w.e.f. 1-2-1963). 
4. The words and figures “under the Medical Act, 1858, or any Act amending the same, or” omitted by Act 8 of 1959, s. 2  

(w.e.f. 1-61959). 

5. Subs. by the A.O. 1950, for “Act of the Central Legislature or of any Legislature in a Province of India” 
6. Subs. by the Adaptation of Laws (No. 3) Order, 1956, for “Part A State or Part B State”. 
7. Clause (j) rep. by Act 15 of 1933, s. 2. 
8. The word “registered” omitted by s. 2, ibid. 
9. Subs. by s. 2, ibid. ,for “any such”. 
10. Subs. by Act 64 of 1962, s. 2, for the proviso (w.e.f. 1 -2-1963). 
11. Clause (n) omitted by Act 45 of 2009, s. 6 (w.e.f. 18-1-2010). 
12. Subs. by A. O. 1937, for “of the Govt.”. 

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1[(3) The Central Government or the State Government, by notification in the Official  Gazette, after 
giving  not  less  than  three  months’  notice  of  its  intention  so  to  do,  may,  by  a  like  notification,  add  to 
Schedule  H  any  class  of  persons  employed  in  any  occupation  which  it  is  satisfied  is  a  hazardous 
occupation, and the provisions of this Act shall thereupon apply, in case of a notification by the Central 
Government, within the territories to which the Act extends, or, in the case of a notification by the State 
Government, within the State, to such classes of person: 

Provided that in making addition, the Central Government or the State Government, as the case may 
be, may direct that the provisions of this Act shall apply to such classes of persons in respect of specified 
injuries only.] 

CHAPTER II 

WORKMEN’SCOMPENSATION 

3.  Employer’s  liability  for  compensation.—(1)  If  personal  injury  is  caused  to  a  2[employee]  by 
accident  arising  out  of  and  in  the  course  of  his  employment,  his  employer  shall  be  liable  to  pay 
compensation in accordance with the provisions of this Chapter: 

Provided that the employer shall not be so liable— 

(a)  in  respect  of  any  injury  which  does  not  result  in  the  total  or  partial  disablement  of  the 

2[employee] for a period exceeding 3[three] days; 

(b) in respect of any  4[injury, not resulting in death5[or permanent total disablement], caused by] 

an accident which is directly attributable to— 

(i) the2[employee] having been at the time thereof under the influence of drink or drugs, or 

(ii)  thewilful  disobedience  of  the  2[employee]  to  an  order  expressly  given,  or  to  a  rule 

expressly framed, for the purpose of securing the safety of employee’s, or 

(iii)  thewilful  removal  or  disregard  by  the  2[employee]  of  any  safety  guard  or  other  device 
which he knew to have been provided for the purpose of securing the safety of 6[employees] 7***  

8*                                         *                            *                                *                              * 

9[(2)  If  a[employee]  employed  in any  employment  specified in  Pat  A  of  Schedule  III  contracts  any 
disease  specified  therein  as  an  occupational  disease  peculiar  to  that  employment,  or  if  a2[employee], 
whilst in the service of an employer in whose service he has been employed for a continuous period of not 
less than six months (which period shall not include a period of service under any other employer in the 
same kind of employment) in any employment specified in Part B of Schedule III, contracts any disease 
specified therein as an occupational disease peculiar to that employment, or if a2[employee] whilst in the 
service  of  one  or  more  employers  in  any  employment  specified  in  Part  C  of  Schedule  III  for  such 
continuous period as the Central Government may specify in respect of each such employment, contracts 
any disease specified therein as an occupational disease peculiar to that employment, the contracting of 
the disease shall be deemed to be an injury by accident within the meaning of this section and, unless the 

1. Subs. by Act 30 of 1995, s.2, for sub-section (3) (w.e.f. 15-9-1995). 
2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f. 18-1-2010). 
3. Subs. by Act 8 of 1959, s. 3, for “seven” (w.e.f.1 -6-1959). 
4. Subs. by Act 15 of 1933, s. 3, for “injury to a workman resulting from”. 
5. Ins. by Act 30 of 1995, s. 3 (w.e.f. 15 -9-1995). 
6. Subs. by Act 45 of 2009, s. 5, for “workmen” (w.e.f. 18-1-2010). 
7. The word “or” omitted by Act 5 of 1929, s. 2. 
8. Clause (c)omitted by s. 2, ibid. 
9. Subs. by Act 8 of 1959, s. 3, for sub-sections (2)and (3) (w.e.f. 1-6-1959). 

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contrary  is  proved,  the  accident  shall  be  deemed  to  have  arisen  out  of,  and  in  the  course  of,  the 
employment: 

1[Provided that if it is proved,— 

(a)  that  a  2[employee]  whilst  in  the  service  of  one  or  more  employers  in  any  employment 
specified  in  Part  C  of  Schedule  III  has  contracted  a  disease  specified  therein  as  an  occupational 
disease peculiar to that employment during a continuous period which is less than the period specified 
under this sub-section for that employment, and 

(b) that the disease has arisen out of and in the course of the employment; 

the  contracting  of  such  disease shall be  deemed  to  be  an injury  by  accident  within  the  meaning  of this 
section: 

Provided further that if it is proved that a2[employee] who having served under any employer in any 
employment specified in Part B of Schedule III or who having served under one or more employers in any 
employment specified in Part C of that Schedule, for a continuous period specified under this sub-section 
for that employment and he has after the cessation of such service contracted any disease specified in the 
said Part B or the said Part C, as the case may be, as an occupational disease peculiar to the employment 
and that such disease arose out of the employment, the contracting of the disease shall be deemed to be an 
injury by accident within the meaning of this section.] 

3[(2A) If a2[employee] employed in any employment specified in Part C of Schedule III contracts any 
occupational disease peculiar to that employment, the contracting whereof is deemed to be an injury by 
accident within the meaning of this section, and such employment was under more than one employer, all 
such  employers  shall  be  liable  for  the  payment  of  the  compensation  in  such  proportion  as  the 
Commissioner may, in the circumstances, deem just.] 

(3)  4[The Central Government or the State Government] after giving, by notification in the Official 
Gazette, not less than three months’ notice of its intention so to do, may, by a like notification, add any 
description of employment to the employments specified in Schedule III, and shall specify in the case of 
employments  so  added  the  diseases  which  shall  be  deemed  for  the  purposes  of  this  section  to  be 
occupational diseases peculiar to those employments respectively, and thereupon the provisions of sub-
section (2) shall apply 5[in the case of a notification by the Central Government, within the territories to 
which this Act extends or, in case of a notification by the State Government, within the State]  6*** as if 
such diseases had been declared by this Act to be occupational diseases peculiar to those employments.] 

(4)Save  as  provided  by  7[sub-sections  (2),  (2A)]  and  (3)  no  compensation  shall  be  payable  to 
a2[employee] in respect of any disease unless the disease is  8*** directly attributable to a specific injury 
by accident arising out of and in the course of his employment. 

(5) Nothing herein contained shall be deemed to confer any right to compensation on a2[employee] in 
respect of any injury if he has instituted in a Civil Court a suit for damages in respect of the injury against 
the employer or any other person; and no suit for damages shall be maintainable by a2[employee] in any 
Court of law in respect of any injury— 

(a) if he has instituted a claim to compensation in respect of the injury before a Commissioner; or 

1. Ins. by Act 64 of 1962, s. 3 (w.e.f. 1-2-1963). 
2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.  18-1-2010). 
3. Subs. by Act 64 of 1962, s. 3, for sub-section (2A) (w.e.f. 1-2-1963). 
4. Subs. by Act 30 of 1995, s. 3, for certain words (w.e.f. 15-9-1995). 
5. Ins. by s. 3, ibid. (w.e.f. 15-9-1995). 
6. Certain words omitted by Act 51 of 1970, s. 2 and the Schedule (w.e.f. 1-9-1971). 
7. Subs. by Act 8 of 1959, s. 3, for “sub-section (2)” (w.e.f. 1-6-1959). 
8. The words “solely and” omitted by Act 15 of 1933, s. 3. 

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(b) if an agreement has been come to between the 1[employee] and his employer providing for the 

payment of compensation in respect of the injury in accordance with the provisions of this Act. 
2[4.  Amount  of  compensation.—(1)  Subject  to  the  provisions  of  this  Act,  the  amount  of 

compensation shall be as follows, namely:— 
(a) where death results from the injury 

(b)  where  permanent 
results from the injury 

total  disablement 

an  amount  equal  to  3[fifty  per  cent.]  of  the 
monthly  wages  of  the  deceased  1[employee] 
multiplied by the relevant factor; 

or 
an  amount  of  4[one  lakh  and  twenty  thousand 
rupees], whichever is more; 

an  amount  equal  to  5[sixty  per  cent.]  of  the 
1[employee] 
monthly  wages  of 
the 
multiplied by the relevant factor; 

injured 

or 
an  amount  of  6[one  lakh  and  forty  thousand 
rupees],whichever is more: 

7[Provided that the Central Government may, by notification in the Official Gazette, from time to 

time, enhance the amount of compensation mentioned in clauses (a) and (b);] 

Explanation  I.—For  the  purposes  of  clause  (a)  and  clause  (b),  “relevant  factor”,  in  relation  to 
a1[employee] means the factor specified in the second column of Schedule IV against the entry in the 
first  column  of  that  Schedule  specifying  the  number  of  years  which  are  the  same  as  the  completed 
years of the age of the  1[employee] on his last birthday immediately preceding the date on which the 
compensation fell due. 

8*        *                                 *                                                   ** 
(c)  where  permanent  partial  disablement 
results from the injury. 

(i) in the case of an injury specified in Part II of 
Schedule I, such percentage of the compensation 
which  would  have  been  payable  in  the  case  of 
permanent  total  disablement  as  is  specified 
therein  as  being  the  percentage  of  the  loss  of 
earning capacity caused by that injury, and 
(ii)  in  the  case  of  an  injury  not  specified  in 
Schedule I, such percentage of the compensation 
total 
payable 
disablement  as  is  proportionate  to  the  loss  of 
earning  capacity  (as  assessed  by  the  qualified 
medical practitioner) permanently caused by the 
injury. 

the  case  of  permanent 

in 

1. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f. 18-1-2010) 
2. Subs. by Act 22 of 1984, s. 3, for s. 4 (w.e.f. 1-7-1984). 
3. Subs. by Act 30 of 1995, s. 4, for “forty per cent.” (w.e.f. 15 -9-1995). 
4. Subs. by Act 45 of 2009, s. 7, for “eighty thousand rupees” (w.e.f. 18-1-2010). Earlier it was amended by Act 46 of 2000, s. 3  

(w.e.f. 8-12-2000). 

5. Subs. by Act 45 of 1995, s.4,for “fifty per cent.” (w.e.f. 15-9-1995). 
6. Subs. by Act 45 of 2009, s. 7, for “ninety thousand rupees” (w.e.f. 18-1-2010). Earlier it was amended by Act 46 of 2000, s. 3 

(w.e.f. 8-12-2000). 

7. Ins. by s. 7, ibid. (w.e.f. 18-1-2010). 
8. Explanation II omitted by s. 7, ibid. (w.e.f.18-1-2010). 

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Explanation  I.—Where  more  injuries  than  one  are  caused  by  the  same  accident,  the  amount  of 
compensation  payable  under  this  head  shall  be  aggregated  but  not  so  in  any  case  as  to  exceed  the 
amount which would have been payable if permanent total disablement had resulted from the injuries. 

Explanation II.—In assessing the loss of earning capacity for the purposes of sub-clause (ii), the 
qualified medical practitioner shall have due regard to the percentages of loss of earning capacity in 
relation to different injuries specified in Schedule I; 

(d) where temporary disablement, whether total 
or partial results from the injury 

a  half-monthly  payment  of  the  sum  equivalent 
to  twenty-five  per  cent.  of  monthly  wages  of 
the  1[employee], to be paid in accordance with 
the provisions of sub-section (2). 

2[(1A)  Notwithstanding  anything  contained  in  sub-section  (1),  while  fixing  the  amount  of 
compensation payable to a1[employee] in respect of an accident occurred outside India, the Commissioner 
shall take into account the amount of compensation, if any, awarded to such  1[employee] in accordance 
with the law of the country in which the accident occurred and shall reduce the amount fixed by him by 
the amount of compensation awarded to the 1[employee] in accordance with the law of that country.] 

3[(1B) The Central Government may, by notification in the Official Gazette, specify, for the purposes 

of sub-section (I), such monthly wages in relation to an employee as it may consider necessary;] 

(2)  The  half-monthly  payment  referred  to  in  clause  (d)  of  sub-section  (1)  shall  be  payable  on  the 

sixteenth day— 

(i) from the date of disablement where such disablement lasts for a period of twenty-eight days or 

more, or 

(ii)  after  the expiry  of  a  waiting  period  of  three  days  from  the  date  of  disablement  where  such 
disablement lasts for a period of less than twenty-eight days; and thereafter half-monthly during the 
disablement or during a period of five years, whichever period is shorter: 

Provided that— 

(a) there shall deducted from any lump sum or half-monthly payments to which the  1[employee] 
is  entitled  the  amount  of  any  payment  or  allowance  which  the  1[employee]  has  received  from  the 
employer by way of compensation during the period of disablement prior to the receipt of such lump 
sum or of the first half-monthly payment, as the case may be; and 

(b)  no  half-monthly  payment  shall  in  any  case  exceed  the  amount,  if  any,  by  which  half  the 
amount of the monthly wages of the 1[employee] before the accident execeds half the amount of such 
wages which he is earning after the accident. 

Explanation.—Any  payment  or  allowance  which  the  1[employee]  has  received  from  the  employer 
towards his medical treatment shall not be deemed to be a payment or allowance received by him by way 
of compensation within the meaning of clause (a) of the proviso. 

3[(2A)  The  employee  shall  be  reimbursed  the  actual  medical  expenditure  incurred  by  him  for 

treatment of injuries caused during the course of employment.] 

1. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f . 18-1-2010). 
2. Ins. by Act 30 of 1995, s. 4 (w.e.f. 15-9-1995). 
3. Ins. by Act 45 of 2009, s. 7 (w.e.f. 18-1-2010). 

9 

 
 
 
 
                                                      
(3) On the ceasing of the disablement before the date on which any half-monthly payment falls due 
there shall be payable in respect of that half-month a sum proportionate to the duration of the disablement 
in that half-month.] 

1[(4)  If  the  injury  of  the  2[employee]  results  his  death,  the  employer  shall,  in  addition  to  the 
compensation  under  sub-section  (1),  deposit  with  the  Commissioner  a  sum  of  3[two  thousand  and  five 
hundred rupees] for payment of the same to the eldest surviving dependant of the 2[employee] towards the 
expenditure of the funeral of such 2[employee] or where the2[employee] did not have a dependant or was 
not  living  with  his  dependant  at  the  time  of  his  death  to  the  person  who  actually  incurred  such 
expenditure.] 

4[Provided  that  the  Central  Government  may,  by  notification  in  the  Official  Gazette,  from  time  to 

time, enhance the amount specified in this sub-section.] 

5[4A.  Compensation  to  be  paid  when  due  and  penalty  for  default.—(1)  Compensation  under 

section 4 shall be paid as soon as it falls due. 

(2) In cases where the employer does not accept the liability for compensation to the extent claimed, 
he  shall  be  bound  to  make  provisional  payment  based  on  the  extent  of  liability  which  he  accepts,  and, 
such payment shall be deposited with the Commissioner or made to the  2[employee], as the case may be, 
without prejudice to the right of the 2[employee] to make any further claim. 

6[(3)  Where  any  employer  is  in  default  in  paying  the  compensation  due  under  this  Act  within  one 

month from the date it fell due, the Commissioner shall— 

(a)  direct  that  the  employer  shall,  in  addition  to  the  amount  of  the  arrears,  pay  simple  interest 
thereon at the rate of twelve per cent. per annum or at such higher, rate not exceeding the maximum 
of  the  lending  rates  of  any  scheduled  bank  as  may  be  specified  by  the  Central  Government  by 
notification in the Official Gazette, on the amount due; and 

(b)  if,  in  his  opinion,  there  is  no  justification  for  the  delay,  direct  that  the  employer  shall,  in 
addition to the amount of the arrears and interest thereon, pay a further sum not exceeding fifty per 
cent. of such amount by way of penalty: 

Provided that an order for the payment of penalty shall not be passed under clause (b) without giving 

a reasonable opportunity to the employer to show cause why it should not be passed. 

Explanation.—For  the  purposes  of  this  sub-section,  “scheduled  bank”  means  a  bank  for  the  time 

being included in the Second Schedule to the Reserve Bank of India Act, 1934. 

7[(3A) The interest and the penalty payable under sub-section (3) shall be paid to the  2[employee] or 

his dependant, as the case may be.] 

5.8[Method  of  calculating  wages.—8***9[In  this  Act  and  for  the  purposes  thereof  the  expression 
“monthly wages” means me amount of wages deemed to be payable for a month’s service (whether the 

1. Ins. by Act 30 of 1995, s. 4 (w.e.f.15-9-1995). 
2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010). 
3. Subs. by Act 46 of 2000, s. 3, for “one thousand rupees” (w.e.f.8-12-2000). 
4. Ins. by Act 45 of 2009, s. 7 (w. e. f. 18-1-2010). 
5. Ins. by Act 8 of 1959, s. 5 (w.e.f.1-6-1959). 
6. Subs. by Act 30 of 1995, s. 5 for sub-section (3) (w.e.f.15-9-1995), 
7. Subs. by Act 46 of 2000, s. 4, for sub-section (3A) (w.e.f.8-12-2000). 
8.The  brackets  and  figure  “(1)”  omitted  by  Act  9  of  1938,  s.  4.  Earlier  section  5  was  re-numbered  as  sub-section  (1)  of  that 

section by Act 5 of 1929, s. 3. 

9. Subs. by Act 13 of 1939, s. 2 (w.e.f. 30-6-1934), for “For the purposes of this Act the monthly wages of a workman shall be 

calculated”. The words in italics subs. by Act 15 of 1933, s. 5, for “section 4”. 

10 

 
                                                      
 
wages are payable by the month or by whatever other period or at piece rates), and calculated] as follows, 
namely:— 

(a)  where  the  1[employee]  has,  during  a  continuous  period  of  not  less  than  twelve  months 
immediately  preceding  the  accident,  been  in  the  service  of  the  employer  who  is  liable  to-  pay 
compensation, the monthly wages of the  1[employee] shall be one-twelfth of the total wages which 
have fallen due for payment to him by the employer in the last twelve months of that period; 

2[(b)  where  the  whole  of  the  continuous  period  of  service  immediately  preceding  the  accident 
during  which  the  1[employee]  was  in  the  service  of  the  employer  who  is  liable  to  pay  the 
compensation  was  less  than  one  month,  the  monthly  wages  of  the  1[employee]  shall  be  3***  the 
average monthly amount which, during the twelve months immediately preceding the accident, was 
being earned by a1[employee] employed on the same work by the same employer, or, if there was no 
1[employee] so employed, by a1[employee] employed on similar work in the same locality;] 

4[(c)]  5[in  other  cases  [including  cases  in  which  it  is  not  possible  for  want  of  necessary 
information  to  calculate  the  monthly  wages  under  clause  (b)]],  the  monthly  wages  shall  be  thirty 
times the total wages earned in respect of the last continuous period of service immediately preceding 
the  accident  from  the  employer  who  is  liable  to  pay  compensation,  divided  by  the  number  of  days 
comprising such period. 

6* 

* 

* 

* 

* 

Explanation.—A  period  of  service  shall,  for  the  purposes  of  7[this  8[section]]  be  deemed  to  be 
continuous  which  has  not  been  interrupted  by  a  period  of  absence  from  work  exceeding  fourteen 
days. 

9* 

* 

* 

* 

* 

6.  Review.—(1)  Any  half-monthly  payment  payable  under  this  Act,  either  under  an  agreement 
between the parties or under the order of a Commissioner, may be reviewed by the Commissioner, on the 
application  either  of  the  employer  or  of  the  1[employee]  accompanied  by  the  certificate  of  a  qualified 
medical practitioner that there has been a change in the condition of the  1[employee] or, subject to rules 
made under this Act, on application made without such certificate. 

(2)  Any  half-monthly  payment  may,  on  review  under  this  section,  subject  to  the  provisions  of  this 
Act, be continued, increased, decreased or ended, or if the accident is found to have resulted in permanent 
disablement, be converted to the lump sum to which the 1[employee] is entitled less any amount which he 
has already received by way of half-monthly payments. 

7. Commutation of half-monthly payments.—Any right to receive half-monthly payments may, by 
agreement between the parties or, if the parties cannot  agree and the payments have been continued for 
not  less  than  six  months,  on  the  application  of  either  party  to  the  Commissioner  be  redeemed  by  the 
payment  of  a  lump  sum  of  such  amount  as  may  be  agreed  to  by  the  parties  or  determined  by  the 
Commissioner, as the case may be. 

1. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f. 18-1-2010). 
2. Ins. by Act 15 of 1933, s. 5. 
3. The words “deemed to be” omitted by Act 13 of 1939, s. 2 (w.e.f. 30-6-1934). 
4. Clause (b) relettered as clause (c) by Act 15 of 1933, s. 5. 
5. Subs. by Act 8 of 1959, s. 6, for “in other cases” (w.e.f. 1-6-1959). 
6. The proviso omitted by Act 15 of 1933, s. 5. 
7. Subs. by Act 5 of 1929, s. 3, for “this section”. 
8. Subs. by Act 9 of 1938, s. 4, for “sub-section”. 
9.  Sub-section (2) omitted by Act 15 of 1933, s. 5. Earlier it was added by Act 5 of 1929, s. 3. 

11 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                      
8.  Distribution  of  compensation.—1[(1)  No  payment  of  compensation  in respect  of a  2[employee] 
whose  injury  has  resulted  in  death,  and  no  payment  of  a  lump  sum  as  compensation  to  a  woman  or  a 
person under a legal disability, shall be made otherwise than by deposit with the Commissioner, and no 
such payment made directly by an employer shall be deemed to be a payment of compensation: 

3[Provided  that,  in  the  case  of  a  deceased  2[employee],  an  employer  may  make  to  any  dependant 
advances on account of compensation  4[of an amount equal to three months’ wages of such  2[employee] 
and  so  much  of  such  amount]  as  does  not  exceed the  compensation  payable  to  that  dependant  shall  be 
deducted by the Commissioner from such compensation and repaid to the employer.] 

(2) Any other sum amounting to not less than ten rupees which is payable as compensation may be 

deposited with the Commissioner on behalf of the person entitled thereto. 

(3) The receipt of the Commissioner shall be a sufficient discharge in respect of any compensation 

deposited with him.] 

(4)  On  the  deposit  of  any  money  under  sub-section  (1)  5[as  compensation  in  respect  of  a  deceased 
2[employee] the Commissioner  6*** shall, if he thinks necessary, cause notice to be published or to be; 
served on each dependant in such manner as he thinks fit, calling upon the dependants to appear before 
him on such date as he may fix for determining the distribution of the compensation. If the Commissioner 
is satisfied after any inquiry which he may deem necessary, that no dependant exists, he shall repay the 
balance of the money to the employer by whom it was paid. The Commissioner shall, on application by 
the employer, furnish a statement showing in detail all disbursements made. 

7[(5)  Compensation  deposited  in  respect  of  a  deceased  2[employee]  shall,  subject  to  any  deduction 
made under sub-section (4), be apportioned among the dependants of the deceased  2[employee] or any of 
them in such proportion as the Commissioner thinks fit, or may, in the discretion of the Commissioner, be 
allotted to any one dependant. 

(6)  Where  any  compensation  deposited  with  the  Commissioner  is  payable  to  any  person,  the 
Commissioner shall, if the person to whom the compensation is payable is not a woman or a person under 
a legal disability, and may, in other cases, pay the money to the person entitled thereto. 

(7) Where any lump sum deposited with the Commissioner is payable to a woman or a person under a 
legal disability, such sum may be invested, applied or otherwise dealt with for the benefit of the woman, 
or  of  such  person  during  his  disability,  in  such  manner  as  the  Commissioner  may  direct;  and  where  a  
half-monthly  payment  is  payable  to  any  person  under  a  legal  disability,  the  Commissioner  may,  of  his 
own motion or on an application made to him in this behalf, order that the payment be made during the 
disability to any dependant of the employee or to any other person, whom the Commissioner thinks best 
fitted to provide for the welfare of the 2[employee].] 

8[(8)] Where, on application made to him in this behalf or otherwise, the Commissioner is satisfied 
that,  on  account  of  neglect  of  children  on  the  part  of  parent  or  on  account  of  the  variation  of  the 
circumstances of any dependant or for any other sufficient cause, an order of the Commissioner as to the 
distribution of any sum paid as compensation or as to the manner in which any sum payable to any such 
dependant is to be invested, applied or otherwise dealt with, ought to be varied, the Commissioner may 
make such orders for the variation of the former order as he thinks just in the circumstances of the case: 

1. Subs. by Act 5 of 1929, s. 4, for sub-sections (1) to (3). 
2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010). 
3. Subs. by Act 15 of 1933, s. 6, for the proviso. 
4. Ins. by Act 5 of 1929, s. 4. 
5. Subs. by Act 30 of 1995, s. 6, for certain words (w.e.f.15-9-1995). 
6. Certain words omitted by Act 30 of 1995, s. 6 (w.e.f.15-9-1995). 
7. Subs. by Act 5 of 1929, s. 4, for sub-section (5). 
8. Sub-section (6) renumbered as sub-section (8) by Act 5 of 1929, s. 4. 

12 

 
                                                      
Provided that no such order prejudicial to any person shall be made unless such person has been given 
an opportunity of showing cause why the order should not be made, or shall be made in any case in which 
it would involve the repayment by a dependant of any sum already paid to him. 

1[(9)  Where  the  Commissioner  varies  any  order  under  sub-section  (8)  by  reason  of  the  fact  that 
payment  of  compensation  to  any  person  has  been  obtained  by  fraud,  impersonation  or  other  improper 
means, any amount so paid to or on behalf of such person may be recovered in the manner hereinafter 
provided in section 31]. 

9. Compensation not to be assigned, attached or charged.—Save as provided by this Act, no lump 
sum or half-monthly payment payable under this Act shall in any way be capable of being assigned or 
charged or be liable to attachment or pass to any person other than the 2[employee] by operation of law, 
nor shall any- claim be set off against the same. 

10.  Notice  and  claim.—(1)  3[No  claim  for  compensation  shall  be  entertained  by  a  Commissioner 
unless  notice  of  the  accident  has  been  given  in  the  manner  hereinafter  provided  as  soon  as  practicable 
after  the  happening  thereof  and  unless  the  claim  is  preferred  before  him  within  4[two  years]  of  the 
occurrence of the accident or, in case of death, within 4[two years] from the date of death:] 

Provided that, where the accident is the contracting of a disease in respect of which the provisions of 
sub-section (2) of section 3 are applicable, the accident shall be deemed to have occurred on the first of 
the  days  during  which  the  2[employee]  was  continuously  absent  from  work  in  consequence  of  the 
disablement caused by the disease: 

5[Provided further that in case of partial disablement due to the contracting of any such disease and 
which  does  not  force  the  2[employee]  to  absent  himself  from  work,  the  period  of  two  years  shall  be 
counted from the day the2[employee]gives notice of the disablement to his employer: 

Provided further that if a 2[employee] who, having been employed in an employment for a continuous 
period,  specified  under  sub-section  (2)  of  section  3  in  respect  of  that  employment,  ceasesto  be  so 
employed  and  develops  symptoms  of  an  occupational  disease  peculiar  to  that  employment  within  two 
years of the cessation of employment, the accident shall be deemed to have occurred on the day on which 
the symptoms were first detected:] 

6[Provided further that the want of or any defect or irregularity in a notice shall not be a bar to the 

7[entertainment of a claim]— 

(a) if the claim is  8[preferred] in respect of the death of a2[employee] resulting from an accident 
which occurred on the premises of the employer, or at any place where the 2[employee] at the time of 
the accident was working under the control of- the employer or of any person employed by him, and 
the  2[employee]  died  on  such  premises  or  at  such  place,  or  on  any  premises  belonging  to  the 
employer,  or  died  without  having  left  the  vicinity  of  the  premises  or  place  where  the  accident 
occurred, or 

(b) if the employer  9[or any one of several employers or any person responsible to the employer 
for  the  management  of  any  branch  of  the  trade  or  business  in  which  the  injured  2[employee]  was 

1. Ins. by Act 5 of 1929, s. 4. 
2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f. 18-1-2010). 
3. Subs. by Act 9 of 1938, s. 5, for the original words. 
4. Subs. by Act 8 of 1959, s. 8, for “one year” (w.e.f. 1-6-1959). 
5. Ins. by Act 64 of 1962, s. 5 (w.e.f. 1-2-1963). 
6. Ins. by Act 15 of 1933, s. 7. 
7. Subs. by Act 9 of 1938, s. 5, for “maintenance of proceedings”. 
8. Subs. by s. 5, ibid. 
9. Ins. by s. 5, ibid. 

13 

 
                                                      
 
employed]  had  knowledge  of  the  accident  from  any  other  source  at  or  about  the  time  when  it 
occurred: 

Provided  further,  that  the  Commissioner  may  1[entertain]  and  decide  any  claim  to  compensation  in 
any case notwithstanding that the notice has not been given, or the claim has not been 2[preferred], in due 
time as provided in this sub-section, if he is satisfied that the failure so to give the notice of 3[prefer] the 
claim, as the case may be, was due to sufficient cause. 

(2)  Every  such  notice  shall  give  the  name  and  address  of  the  persons  injured  and  shall  state  in 
ordinary  language  the  cause  for  the  injury  and  the  date  on  which  the  accident  happened,  and  shall  be 
served on the employer or upon 4[any one of] several employers, or upon any person 5*** responsible to 
the employer for the management of any branch of the trade or business in which the injured 6[employee] 
was employed. 

7[(3) The State Government may require that any prescribed class of employers shall maintain at their 
premises  at  which  8[employees]  are  employed  a  notice-book,  in  the  prescribed  form,  which  shall  be 
readily accessible at all reasonable times to any injured6[employee] employed on the premises and to any 
person acting bona fide on his behalf. 

(4)  A  notice  under  this  section  may  be  served  by  delivering  it  at,  or  sending  it  by  registered  post 
addressed to, the residence or any office or place of business of the person on whom it is to be served, or, 
where a notice-book is maintained, by entry in the notice-book.] 

9[10A.  Power  to  require  from  employers  statements  regarding  fatal  accidents.—(1)  Where  a 
Commissioner receives information from any source that a6[employee] has died as a result of an accident 
arising  out  of  and  in  the  course  of  his  employment,  he  may  send  by  registered  post  a  notice  to  the 
workman’s employer requiring him to submit, within thirty days of the service of the notice, a statement, 
in  the  prescribed form,  giving  the  circumstances  attending  the death  of  the  6[employee],  and  indicating 
whether, in the opinion of the employer, he is or is not liable to deposit compensation on account of the 
death. 

(2) If the employer is of opinion that he is liable to deposit compensation, he shall make the deposit 

within thirty days of the service of the notice. 

(3) If the employer is of opinion that he is not liable to deposit compensation, he shall in his statement 

indicate the grounds on which he disclaims liability. 

(4) Where the employer has so disclaimed liability, the Commissioner, after such enquiry as he may 
think fit, may inform any of the dependants of the deceased 6[employee], that it is open to the dependants 
to prefer a claim for compensation, and may give them such other further information as he may think fit. 

1. Subs. by Act 9 of 1938, s. 5, for “admit”. 
2. Subs. by s. 5, ibid., for “instituted”. 
3. Subs. by s. 5, ibid., for “institute”. 
4. Subs. by Act 7 of 1924, s. 2 and the First Schedule, for “any one or”. 
5. The word “directly” omitted by Act 9 of 1938, s. 5. 
6. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010). 
7. Subs. by Act 15 of 1933, s. 7, for sub-section (3). 
8. Subs. by Act 45 of 2009, s. 5, for “workmen” (w.e.f. 18-1-2010). 
9. Ins. by Act 15 of 1933, s. 8. 

14 

 
 
 
                                                      
 
10B. Reports of fatal accidents and serious bodily injuries.—(1) Where, by any law for the time 
being  in  force,  notice  is  required  to  be  given  to  any  authority,  by  or  on  behalf  of  an  employer,  of  any 
accident occurring on his premises which results in death 1[or serious bodily injury], the person required 
to  give  the  notice  shall,  within seven  days  of the  death  1[or  serious  bodily  injury],  send  a  report  to  the 
Commissioner giving the circumstances attending the death 1[or serious. bodily injury]: 

Provided that  where the  State  Government  has so  prescribed the  person required  to  give  the  notice 
may instead of sending such report to the Commissioner send it to the authority to whom he is required to 
give the notice. 

1[Explanation.—“Serious  bodily  injury”  means  an  injury  which  involves,  or  in  all  probability  will 
involve the permanent loss of the use of, or permanent injury to, any limb, or the permanent loss of or 
injury to the sight or hearing, or the fracture of any limb, or the enforced absence of the injured person 
from work for a period exceeding twenty days.] 

(2)  The  State  Government  may,  by  notification  in  the  Official  Gazette,  extend  the  provisions  of  
sub-section (1) to any class of premises other than those coming within the scope of that sub-section, and 
may, by such notification, specify the persons who shall send the report to the Commissioner: 

1[(3)  Nothing  in  this  section  shall  apply  to  factories  to  which  the  Employees’  State  Insurance  Act, 

1948 (34 of 1948), applies.] 

11. Medical examination.—(1) Where a 2[employee] has given notice of an accident, he shall, if the 
employer, before the expiry of three days from the time at which service of the notice has been effected, 
offers to have him examined free of charge by a qualified medical practitioner, submit himself for such 
examination, and any 2[employee] who is in receipt of a half monthly payment under this Act shall, if so 
required, submit himself for such examination from time to time: 

Provided  that  a2[employee]  shall  not  be  required  to  submit  himself  for  examination  by  a  medical 
practitioner  otherwise than  in  accordance  with rules made  under this  Act,  or  at  more  frequent  intervals 
than may be prescribed. 

(2)  If  a2[employee],  on  being  required  to  do  so  by  the  employer  under  sub-section  (1)  or  by  the 
Commissioner at any time, refuses to submit himself for examination by a qualified medical practitioner 
or in any way obstructs the same, his right to compensation shall be suspended during the continuance of 
such refusal or obstruction unless, in the’ case of refusal, he was prevented by any sufficient cause from 
so submitting himself. 

(3) If a2[employee], before the expiry of period within which he is liable under sub-section (1) to be 
required to submit himself for medical examination, voluntarily leaves without having been so examined 
the vicinity of the place in which he was employed, his right to compensation shall be suspended until he 
returns and offers himself for such examination. 

(4) Where a2[employee], whose right to compensation has been suspended under sub-section (2) or  
sub-section (3), dies without having submitted himself for medical examination as required by either of 
those  sub-sections,  the  Commissioner  may,  if  he  thinks  fit,  direct  the  payment  of  compensation  to  the 
dependants of the deceased 2[employee]. 

(5)  Where  under  sub-section  (2)  or  sub-section  (3)  a  right  to  compensation  is  suspended,  no 
compensation  shall  be  payable  in  respect  of  the  period  of  suspension,  and,  if  the  period  of  suspension 
commences before the expiry of the waiting period referred to in clause (d) of sub-section (1) of section 4, 
the waiting period shall be increased by the period during which the suspension continues. 

1. Ins. by Act 8 of 1959, s. 9 (w.e.f.1-6-1959). 
2. Subs. by Act 45 of 2009, s. 5, for “Workman” (w.e.f.18-1-2010). 

15 

 
                                                      
(6)  Where  an  injured  1[employee]  has  refused  to  be  attended  by  a  qualified  medical  practitioner 
whose services have been offered to him by the employer free of charge or having accepted such offer has 
deliberately  disregarded  the  instructions  of  such  medical  practitioner,  then,2[if  it  is  proved  that  the 
1[employee] has not thereafter been regularly attended by a qualified medical practitioner or having been 
so attended has deliberately failed to follow his instructions and that such refusal, disregard or failure was 
unreasonable] in the circumstances of the case and that the injury has been aggravated thereby, the injury 
and resulting disablement shall be deemed to be of the same nature and duration as they might reasonably 
have  been  expected  to  be  if  the  1[employee]  had  been  regularly  attended  by  a  qualified  medical 
practitioner  3[whose  instructions  he  had  followed].,  and  compensation,  it  any,  shall  be  payable 
accordingly. 

12. Contracting.—(1) Where any person (hereinafter in this section referred to as the principal) in 
the course of or for the purposes of his trade or business contracts with any other person (hereinafter in 
this section referred to as the contractor) for the execution by or under the contractor of the whole or any 
part of any work which is ordinarily part of the trade or business of the principal, the principal shall be 
liable  to  pay  to  any  1[employee]  employed  in  the  execution  of  the  work  any  compensation  which  he 
would  have  been  liable  to  pay  if  that  1[employee]  had  been  immediately  employed  by  him;  and  where 
compensation  is  claimed  from  the  principal,  this  Act  shall  apply  as  if  references  to  the  principal  were 
substituted for references to the employer except that the amount of compensation shall be calculated with 
reference to the wages of the 1[employee] under the employer by whom he is immediately employed. 

(2)  Where  the  principal  is  liable  to  pay  compensation  under  this  section,  he  shall  be  entitled  to  be 
indemnified by the contractor  4[,or any other person, from whom the  1[employee] could have recovered 
compensation  and  where  a  contractor  who  is  himself  a  principal  is  liable  to  pay  compensation  or  to 
indemnify a principal under this section he shall be entitled to be indemnified by any person standing to 
him in the relation of a contractor from whom the  1[employee] could have recovered compensation] and 
all questions as to the right to and the amount of any such indemnity shall, in default of agreement, be 
settled by the Commissioner. 

(3)  Nothing  in  this  section  shall  be  construed  as  preventing  a1[employee]  from  recovering 

compensation from the contractor instead of the principal. 

(4) This section shall not apply in any case where the accident occurred elsewhere than on, in or about 
the premises on which the principal has undertaken or usually undertakes, as the case may be, to execute 
the work or which are otherwise under his control or management. 

13. Remedies of employer against stranger.—Where a1[employee] has recovered compensation in 
respect of any injury caused under circumstances creating a legal liability of some person other than the 
person by whom the compensation was paid to pay damages in respect thereof, the person by whom the 
compensation was paid and any person who has been called on to pay an indemnity under section 12 shall 
be entitled to be indemnified by the person so liable to pay damages as aforesaid. 

14. Insolvency of employer.—(1) Where any employer has entered into a contract with any insurers 
in respect of any liability under this Act to any  1[employee], then in the event of the employer becoming 
insolvent or making a composition or scheme of arrangement with his creditors or, if the employer is a 
company,  in  the  event  of  the  company  having  commenced to  be  wound  up, the  rights  of the  employer 
against the insurers as respects that liability shall, notwithstanding anything in any law for the time being 
in  force  relating  to  insolvency  or  the  winding  up  of  companies,  be  transferred  to  and  vest  in  the 
1[employee],  and  upon  any  such  transfer  the  insurers  shall  have  the  same  rights  and  remedies  and  be 

1. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010). 
2. Subs. by Act 9 of 1938, s. 6, for certain words. 
3. Ins. by s. 6, ibid. 
4. Ins. by Act 15 of 1933, s. 9. 

16 

 
                                                      
subject  to  the  same  liabilities  as  if  they  were  the  employer,  so,  however,  that  the  insurers-shall  not  be 
under any greater liability to the 1[employee] than they would have been under to the employer. 

(2) If the liability of the insurers to the  1[employee] is less than the liability of the employer to the 

1[employee], the 1[employee] may prove for the balance in the insolvency proceedings or liquidation. 

(3) Where in any case such as is referred to in sub-section (1) the contract of the employer with the 
insurers is void or voidable by reason of non-compliance on the part of the employer with any terms or 
conditions  of  the  contract  (other  than  a  stipulation  for  the  payment  of  premia),  the  provisions  of  that  
sub-section shall apply as if the contract were not void or voidable, and the  insurers shall be entitled to 
prove in the insolvency proceedings or liquidation for the amount paid to the 1[employee]: 

Provided that the provisions of this sub-section shall not apply in any case in which the  1[employee] 
fails to give notice to the insurers of the happening of the accident and of any resulting disablement as 
soon as practicable after he becomes aware of the institution of the insolvency or liquidation proceedings. 

(4) There shall be deemed to be included among the debts which under section 49 of the Presidency-
towns  Insolvency  Act,  1909  (3  of  1909),  or  under  section  61  of  the  Provincial  Insolvency  Act,  1920  
(5 of 1920), or under 2[section 530 of the Companies Act, 1956 (1 of 1956)] arc in the distribution of the 
property of an insolvent or in the distribution of the assets of a company being wound up to be paid in 
priority to all other debts, the amount due in respect of any compensation the liability wherefor accrued 
before  the  date  of  the  order  of  adjudication  of  the  insolvent  or  the  date  of  the  commencement  of  the 
winding up, as the ease may be, and those Acts shall have effect accordingly. 

(5) Where the compensation is a half-monthly payment, the amount due in respect thereof shall, for 
the  purposes  of  this  section,  be  taken  to  be  the  amount  of  the  lump  sum  for  which  the  half-monthly 
payment could, if redeemable, be redeemed if application were made for that purpose under section 7, and 
a certificate of the Commissioner as to the amount of such sum shall be conclusive proof thereof. 

(6) The provisions of sub-section (4) shall apply in the ease of any amount for which an insurer is 
entitled to prove under sub-section (3), but otherwise those provisions shall not apply where the insolvent 
or  the  company  being  wound  up  has  entered  into  such  a  contract  with  insurers  as  is  referred  to  in  
sub-section (1). 

(7) This section shall not apply where a company is wound up voluntarily merely for the purposes of 

reconstruction or of amalgamation with another company. 

3[14A. Compensation to be first charge on assets transferred by employer.—Where an employer 
transfers his assets before any amount due in respect of any compensation, the liability where for accrued 
before the date of the transfer, has been paid, such amount shall, notwithstanding anything contained in 
any  other  law  for  the  time  being  in  force,  be  a  first  charge  on  that  part  of  the  assets  so  transferred  as 
consists of immovable property.] 

15.  Special  provisions  relating  to  masters  and  seamen.—This  Act  shall  apply  in  the  case  of 

4[employees] who are masters of 5*** ships or seamen subject to the following modifications namely:— 

(1)  The  notice  of  the  accident  and  the  claim  for  compensation  may,  except  where  the  person 
injured is the master of the ship, be served on the master of the ship as if he were the employer, but 
where  the  accident  happened  and  the  disablement  commenced  on  board  the  ship  it  shall  not  be 
necessary for any seaman to give any notice of the accident. 

1. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010). 
2. Subs. by Act 30 of 1995, s. 7, for certain words (w.e.f.15-9-1995). 
3. Ins. by Act 8 of 1959, s. 10 (w.e.f.1-6-1959). 
4. Subs. by Act 45 of 2009, s. 5, for “workmen” (w.e.f.18-1-2010). 
5. The word “registered” omitted by Act 15 of 1933, s. 10. 

17 

 
                                                      
(2)  In  the  case  of  the  death  of  a  master  or  seaman,  the  claim  for  compensation  shall  be  made 
within 1[one year] after the news of the death has been received by the claimant or, wherethe ship has 
been or is deemed to have been lost with all hands, within eighteen months of the date on which the 
ship was, or is deemed to have been, so lost: 

2[Provided  that  the  Commissioner  may  entertain  any  claim  to  compensation  in  any  case 
notwithstanding that the claim has not been preferred in due time as provided in this sub-section, if he 
is satisfied that the failure so to prefer the claim was due to sufficient cause.] 

(3) Where an injured master or seaman is discharged or left behind in any part of 3[India or] 4[in 
any foreign country] any depositions taken by any Judge or Magistrate in that part or by any Consular 
Officer in the foreign country and transmitted by the person by whom they are taken to the Central 
Government or any State Government shall, in any proceedings for enforcing the claim, be admissible 
in evidence— 

(a)  if  the  deposition  is  authenticated  by  the  signature  of  the  Judge,  Magistrate  or  Consular 

Officer before whom it is made; 

(b) if the defendant or the person accused, as the case may be, had an opportunity by himself 

or his agent to cross-examine the witness; and 

(c)  if  the  deposition  was  made  in  the  course  of  a  criminal  proceeding,  on  proof  that  the 

deposition was made in the presence of the person accused; 

and  it  shall  not  be  necessary  in  any  case  to  prove  the  signature  or  official  character  of  the  person 
appearing to have signed any such deposition and a certificate by such person that the defendant or the 
person  accused  had  an  opportunity  of cross-examining  the  witness  and  that the deposition  if  made in a 
criminal proceeding was made in the presence of the person accused shall, unless the contrary is proved, 
be sufficient evidence that he., had that opportunity and that it was so made. 

5* 

                                 *                                       *                              *                            * 

6[(4)] No 7[half-monthly payment] shall be payable in respect of the period during which the owner of 
the ship is, under any law in force for the time being  8*** relating to merchant shipping, liable to defray 
the expenses of maintenance of the injured master or seaman. 

9[(5)  No compensation  shall  be  payable  under  this  Act  in  respect  of  any  injury  in  respect of  which 
provision is made for payment of a gratuity, allowance or pension under the War Pensions and Detention 
Allowances  (Mercantile  Marine,  etc.)  Scheme,  1939,  or  the  War  Pensions  and  Detention  Allowances 
(Indian  Seamen,  etc.)Scheme,  1941,  made  under  the  Pensions  (Navy,  Army,  Air  Force  and  Mercantile 
Marine) Act, 1939 (2 & 3 Geo.), or under the War Pensions and Detention Allowances (Indian Seamen) 
Scheme, 1942 (6, c. 83), made by the Central Government. 

(6) Failure to give a notice or make a claim or commence proceedings within the time required by this 
Act shall not be a bar to the maintenance of proceedings under this Act in respect of any personal injury, 
if— 

1. Subs. by Act 8 of 1959, s. 11, for “six months” (w.e.f.1-6-1959). 
2. Added by s. 11, ibid. (w.e.f.1-6-1959). 
3. Ins. by the A.O. 1950. 
4. Subs. by Act 22 of 1984, s. 4, for certain words (w.e.f.1-7-1984). 
5. Clause (4) omitted by Act 9 of 1938, s. 7. 
6. Clause (5) renumbered as clause (4) of that section by s. 7, ibid. 
7. Subs. by Act 7 of 1924, s. 2 and the First Schedule, for “monthly payment”. 
8. The words “in Part A States and Part C States” omitted by Act 3 of 1951, s. 3, and the Schedule. 
9. Subs. by Act 1 of 1942, s. 2 (w.e.f.3-9-1939). 

18 

 
                                                      
(a) an application has been made for payment in respect of that injury under any of the schemes 

referred to in the preceding clause, and 

(b) the State Government certifies that the said application was made in the reasonable belief that 
the  injury  was  one  in  respect  of  which  the  scheme  under  which  the  application  was  made  makes 
provision for payments, and that the application was rejected or that payments made in pursuance of 
the application were discontinued on the ground that the injury was not such an injury, and 

(c) the proceedings under this Act are commenced within one month from the date on which the 

said certificate of the State Government was furnished to the person commencing the proceedings.] 

1[15A. Special provisions relating to captains and other members of crew of aircrafts.—This Act 
shall apply in the case of 2[employees] who are captains or other members of the crew of aircrafts subject 
to the following modifications, namely:— 

(1)  The  notice  of  the  accident  and  the  claim  for  compensation  may,  except  where  the  person 
injured  is  the  captain  of  the  aircraft,  be  served  on  the  captain  of  the  aircraft  as  if  he  were  the 
employer, but where the accident happened and the disablement commenced on board the aircraft it 
shall not be necessary for any member of the crew to give notice of the accident. 

(2)  In  the  case  of  the  death  of  the  captain  or  other  member  of  the  crew,  the  claim  for 
compensation  shall  be  made  within  one  year  after  the  news  of  the  death  has  been  received  by  the 
claimant or, where the aircraft has been or is deemed to have been lost with all hands, within eighteen 
months of the date on which the aircraft was, or is deemed to have been, so lost: 

Provided  that  the  Commissioner  may  entertain  any  claim  for  compensation  in  any  case 
notwithstanding that the claim has not been preferred in due time as provided in this sub-section, if he 
is satisfied that the failure so to prefer the claim was due to sufficient cause. 

(3)  Where  an  injured  captain  or  other  member  of  the  crew  of  the  aircraft  is  discharged  or  left 
behind in any part of India or in any other country, any depositions taken by any Judge or Magistrate 
in that part or by any Consular Officer in the foreign country and transmitted by the person by whom 
they  are  taken  to  the  Central  Government  or  any  State  Government  shall,  in  any  proceedings  for 
enforcing the claims, be admissible in evidence— 

(a)  if  the  deposition  is  authenticated  by  the  signature  of  the  Judge,  Magistrate  or  Consular 

Officer before whom it is made; 

(b) if the defendant or the person accused, as the case may be, had an opportunity by himself 

or his agent to cross-examine the witness; 

(c)  if  the  deposition  was  made  in  the  course  of  a  criminal  proceeding,  on  proof  that  the 

deposition was made in the presence of the person accused, 

and  it  shall  not  be  necessary  in  any  case  to  prove  the  signature  or  official  character  of  the  person 
appearing to have signed any such deposition and a certificate by such person that the defendant or the 
person  accused  had  an  opportunity  of cross-examining  the  witness  and  that the deposition  if  made in a 
criminal proceedings was made in the presence of the person accused shall, unless the contrary is proved, 
be sufficient evidence that he had that opportunity and that it was so made. 

15B. Special provisions relating to 2[employees] abroad of companies and motor vehicles.—This 

Act shall apply— 

(i)  in  the  case  of  2[employees]  who  are  persons  recruited  by  companies  registered  in  India  and 

working as such abroad, and 

1. Ins. by Act 30 of 1995, s. 8 (w.e.f.15-9-1995). 
2. Subs. by Act 45 of 2009, s. 5, for “workmen” (w.e.f.18-1-2010). 

19 

 
                                                      
(ii) persons sent for work abroad along with motor vehicles registered under the Motor Vehicles, 
Act, 1988 (59 of 1988) as drivers, helpers, mechanics, cleaners or other  1[employees], subject to the 
following modifications, namely:— 

(1)  The  notice  of  the  accident  and  the  claim  for  compensation  may  be  served  on  the  local 
agent  of  the  company,  or  the  local  agent  of  the  owner  of  the  motor  vehicle,  in  the  country  of 
accident, as the case may be. 

(2) In the case of death of the  2[employee] in respect of whom the provisions of this section 
shall apply, the claim for compensation shall be made within one year after the news of the death 
has been received by the claimant: 

Provided  that  the  Commissioner  may  entertain  any  claim  for  compensation  in  any  case 
notwithstanding that the claim has not been preferred in due time as provided in this subsection, if 
he is satisfied that the failure so to prefer the claim was due to sufficient cause. 

(3) Where an injured  2[employee] is discharged or left behind in any part of India or in any 
other country any depositions taken by any Judge or Magistrate in that part or by any Consular 
Officer,  in  the  foreign  country  and  transmitted  by  the  person  by  whom  they  are  taken  to  the 
Central Government or any State Government shall, in any proceedings for enforcing the claims, 
be admissible in evidence— 

(a) if the deposition is authenticated by the signature of the Judge, Magistrate or Consular 

Officer before whom it is made; 

(b)  if  the  defendant  or  the  person  accused,  as  the  case  may  be,  had  an  opportunity  by 

himself or his agent to cross-examine the witness; 

(c) if the deposition was made in the course of a criminal proceeding, on proof that the 

deposition was made in the presence of ‘the person accused, 

and  it  shall  not  be  necessary  in  any  case  to  prove  the  signature  017  official  character  of  the  peron 
appearing to have signed any such deposition and a certificate by such person that the defendant or 
the person accused had an opportunity of cross-examining the witness and that the deposition if made 
in a criminal proceding vas made in the presence of the person accused shall, unless the contrary is 
proved, be sufficient evidence that he had that opportunity and that it was so made.] 

16.  Returns  as  to  compensation.—The  3[State  Government]  may  by  notification  in  the  Official 
Gazette,  direct  that  every  person  employing  1[employees],  or  that  any  specified  class  of  such  persons, 
shall send at such time and in such form and to such authority, as may be specified in the notification, a 
correct return specifying the number of injuries in respect of which compensation has been paid by the 
employer  during  the  previous  year  and  the  amount  of  such  compensation  together  with  such  other 
particulars as to the compensation as the 3[State Government] may direct. 

17. Contracting out.—Any contract or agreement whether made before or after the commencement 
of this Act, whereby a2[employee] relinquishes any right of compensation from the employer for personal 
injury arising out of or in the course of the employment, shall be null and void in so far as it purports to 
remove or reduce the liability of any person to pay compensation under this Act. 

4[17A.Duty of employer to inform employee of his rights.—Every employer shall immediately at 
the time of employment of an employee, inform the employee of his rights to compensation under this 

1. Subs. by Act 45 of 2009, s. 5, for “workmen” (w.e.f.18-1-2010). 
2. Subs. by s. 5,ibid., for “workman” (w.e.f.18-1-2010). 
3. Subs. by the A.O. 1937, for “G.G. in C”. 
4. Ins. by Act 11 of 2017, s. 2 (w.e.f.15-5-2017). 

20 

 
                                                      
Act, in writing as well as through electronic means, in English or Hindi or in the official language of the 
area of employment, as may be understood by the employee.] 

18. [Proof of age.] Rep. by the Workmen’s Compensation (Amendment) Act, 1959 (8 of 1959) s. 12 

(w.e.f. 1-6-1959). 

1[18A. Penalties.—(1) Whoever— 

(a)  fails  to  maintain  a  notice-book  which  he  is  required  to  maintain  under  sub-section  (3)  of 

section 10, or 

(b)  fails  to  send  to  the  Commissioner  a  statement  which  he  is  required  to  sent  under  

sub-section (1) of section 10A, or 

(c) fails to send a report which he is required to sent under section 10B, or 

(d) fails to make a return which he is required to make under 2[section 16, or] 

3[(e) fails to inform the employee of his rights to compensation as required under section 17A;] 

shall be punishable with fine 4[which shall not be less than fifty thousand rupees but which may extend to 
one lakh rupees]. 

(2) No prosecution under this section shall be instituted except by or with the previous sanction of a 
Commissioner,  and  no  Court  shall  take  cognizance  of  any  offence  under  this  section,  unless  complaint 
thereof is made 5[within six months of the date on which the alleged commission of the offence came to 
the knowledge of the Commissioner].] 

CHAPTER III  

COMMISSIONERS 

19. Reference to Commissioners.—(1) If any question arises in any proceedings under this Act as to 
the liability of any person to pay compensation (including any question as to whether a person injured is 
or is not a 6[employee]) or as to the amount or duration of compensation (including any question as to the 
nature  or  extent  of  disablement),  the  question  shall,  in  default  of  agreement,  be  settled  by  7[a 
Commissioner]. 

(2) No Civil Court shall have jurisdiction to settle, decide or deal with any question which is by or 
under this Act required to be ‘settled, decided or dealt with by a Commissioner or to enforce any liability 
incurred under this Act. 

20.  Appointment  of  Commissioners.—(1)  The  State  Government  may,  by  notification  in  the 
Official Gazette,  8[who is or has been a member of a State Judicial Service for a period of not less than 
five  years  or  is  or  has  been  for  not  less  than  five  years  an  advocate  or  a  pleader  or  is  or  has  been  a 
Gazetted Officer for not less than five years having education qualifications and experience in personnel 
management,  human  resource  development  and  industrial  relations]  appoint  any  person  to  be  a 
Commissioner for Workmen’s Compensation for such9*** area as may be specified in the notification. 

1. Ins. by Act 15 of 1933, s. 11. 
2. Subs. by Act 11 of 2017, s. 3, for “section 16” (w.e.f.15-5-2017). 
3. Ins. by s. 3, ibid. (w.e.f.15-5-2017). 
4. Subs. by s. 3, ibid., for “which may extend to five thousand rupees” (w.e.f.15-5-2017). 
5. Subs. by Act 64 of 1962, s. 6, for certain words (w.e.f.1-2-1963). 
6. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010). 
7. Subs. by Act 15 of 1933, s. 12, for “the Commissioner”. 
8. Ins. by Act 45 of 2009, s. 8 (w.e.f.18-1-2010). 
9. The word “local” omitted by Act 64 of 1962, s. 7 (w.e.f.1-2-1963). 

21 

 
 
                                                      
1[(2)  Where  more  than  one  Commissioner  had  been  appointed  for  any  2***  area,  the  State 

Government may, by general or special order, regulate the distribution of business between them.] 

3[(3)]  Any  Commissioner may,  for  the  purpose  of  deciding  any  matter referred to  him  for  decision 
under this Act, choose one or more persons possessing special knowledge of any matter relevant to the 
matter under inquiry to assist him in holding the inquiry. 

3[(4)] Every Commissioner shall be deemed to be a public servant within the meaning of the Indian 

Penal Code (45 of 1860). 

21. Venue of proceedings and transfer.—4[(1) Where any matter is under this Act to be done by or 
before  a  Commissioner,  the  same  shall,  subject  to  the  provisions  of  this  Act  and  to  any  rules  made 
hereunder, be done by or before the Commissioner for the area in which— 

(a) the accident took place which resulted in the injury; or 

(b)  the5[employee]  or  in  case  of  his  death,  the  dependant  claiming  the  compensation  ordinarily 

resides; or 

(c) the employer has his registered office: 

Provided  that  no  matter  shall  be  processed  before  or  by  a  Commissioner,  other  than  the 
Commissioner  having  jurisdiction  over  the  area  in  which  the  accident  took  place,  without  his  giving 
notice in the manner prescribed by the Central Government to the Commissioner having jurisdiction over 
the area and the State Government concerned: 

Provided further that, where the 5[employee], being the master of a ship or a seaman or the captain or 
a  member  of  the  crew  of  an  aircraft  or  a5[employee]  in  a  motor  vehicle  or  a  company,  meets  with  the 
accident outside India any such matter may be done by or before a Commissioner for the area in which 
the owner or agent of the ship, aircraft or motor vehicle resides or carries on business or the registered 
office of the company is situate, as the case may be. 

(1A)  If  a  Commissioner,  other  than  the  Commissioner  with  whom  any  money  has  been  deposited 
under  section  8,  proceeds  with  a  matter  under  this  Act,  the  former  may  for  the  proper  disposal  of  the 
matter call for transfer of any records or money remaining with the latter and on receipt of such a request, 
he shall comply with the same.] 

(2)  If  a  Commissioner  is  satisfied  6[that  any  matter  arising  out  of  any  proceedings  pending  before 
him] can be more conveniently depth with by any other Commissioner, whether in the same State or not, 
he  may,  subject  to  rules  made  under  this  Act,  order  such  matter  to  be  transferred  to  such  other 
Commissioner either for report or for disposal, and, if he does so, shall forthwith transmit to such other 
Commissioner all documents relevant for the decision of such matter and, where the matter is transferred 
for disposal, shall also transmit in the prescribed manner any money remaining in his hands or invested 
by his for the benefit of any party to the proceedings: 

1. Ins. by Act 15 of 1933, s. 13. 
2. The word “local” omitted by Act 64 of 1962, s. 7 (w.e.f.1-2-1963). 
3. Sub-section (2) and (3) renumbered as sub-sections (3) and (4) to that section respectively by Act 15 of 1933, s. 13. 
4. Subs. by Act 30 of 1995, s. 10, for sub-section (1),(w.e.f.15-5-1995). 
5. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010). 
6. Subs. by Act 9 of 1938, s. 9, for certain words. 

22 

 
 
 
 
 
                                                      
1[Provided that the Commissioner shall not, where any party to the proceedings has appeared before 
him,  make  any  order  of  transfer  relating  to  the  distribution  among  dependants  of  a  lump  sum  without 
giving such party an opportunity of being heard:] 

2***** 
(3) The Commissioner to whom any  matter is so transferred shall, subject to rules made under this 
Act,  inquire  thereinto  and,  if  the  matter  was  transferred  for  report,  return  his  report  thereon  or,  if  the 
matter was transferred for disposal, continue the proceedings as if they had originally commenced before 
him. 

(4) On receipt of a report from a Commissioner to whom any matter has been transferred for report 
under  sub-section  (2),  the  Commissioner  by  whom  it,  was  referred  shall  decide  the  matter  referred  in 
conformity with such report. 

3[(5) The State Government may transfer any matter from any Commissioner appointed by it to any 

other Commissioner appointed by it.] 

22.  Form  of  application.—4[(1)  Where  an  accident  occurs  in  respect  of  which  liability  to  pay 
compensation under this Act arises, a claim for such compensation may, subject to the provisions of this 
Act, be made before the Commissioner. 

(1A) Subject to the provisions of sub-section (1), no application for the settlement] of any matter by a 
Commissioner, 5[other than an application by a dependant or dependants for compensation] shall be made 
unless and  until  some  question  has  arisen between the  parties  in  connection therewith  which  they  have 
been unable to settle by agreement. 

(2) 6[An application to a Commissioner] may be made in such form and shall be accompanied by such 
fee,  if  any,  as  may  be  prescribed,  and  shall  contain,  in  addition  to  any  particulars  which  may  be 
prescribed, the following particulars, namely:— 

(a)  a  concise  statement  of the  circumstances  in  which  the  application  is  made  and  the relief  or 

order which the applicant claims; 

(b) in the case of a claim for compensation against an employer, the date of service of notice of 
the accident on the employer and, if such notice has not been served or has not been served in due 
time, the reason for such omission; 

(c) the names and addresses of the parties; and 
(d) 5[except in the case of an application by dependants for compensation] a concise statement of 

the matters on which agreement has and 7[of] those on which agreement has not been come to. 
(3) If the applicant is illiterate or for any other reason is unable to furnish the required information in 
writing,  the  application  shall,  if  the  applicant  so  desires,  be  prepared  under  the  direction  of  the 
Commissioner. 

Uttar Pradesh 

STATE AMENDMENT 

Amendment of section 22 of  Act No. 8 of  1923.—In section 22 of the Employees’ Compensation 

Act, 1923, in sub-section (1-A) the following proviso shall be inserted at the end, namely:-- 

1. Ins. by Act 9 of 1938, s. 9. 
2. Second proviso omitted by s. 10, ibid. (w.e.f.15-9-1995). 
3. Ins. by Act 15 of 1933, s. 14. 
4. Subs. by Act 30 of 1995, s. 11, for certain words (w.e.f.15-9-1995). 
5. Ins. by Act 15 of 1933, s. 15. 
6. Subs. by s. 15, ibid., for “where any such question has arisen, the application”. 
7. Subs. by Act 37 of 1925, s. 2 and the First Schedule, for “on”. 

23 

 
                                                      
“Provided  that  if  an  application  is  not  made  before  the  Commissioner  by  an  employee  or  by 
dependent  or  dependents  thereof  within  a  period  of  ninty  days  from  the  date  of  the  occurrence  of  the 
accident, then without prejudice to the right conferred to an employee or dependent or dependents thereof 
under this act or the rules made thereunder, such application may be filed by an officer authorized by the 
State  Government  in  this  behalf  for  the  purpose  of  compensation  to  be  paid  to  such  employee  or 
dependent or dependents thereof; 

Provided  further  that  where  it  comes  to  the  notice  of  the  Commissioner  that  applicant  for 
compensation  arising  out  of  same  accident  has  been  filed  by  both  the  employee  or  dependent  or 
dependents thereof and by the officer referred to in the first proviso, the Commissioner shall club both the 
applications  and  decide  the  same  by  single  order  without  prejudice  to  the  right  of  such  employee  or 
dependents thereof.” 

[Vide Uttar Pradesh Act 27 of 2018, s. 2] 

1[22A. Power of Commissioner to require further deposit in cases of fatal accident.—(1) Where 
any sum has been deposited by an employer as compensation payable in respect of a  2[employee] whose 
injury  has  resulted  in  death,  and  in  the  opinion  of  the  Commissioner  such  sum  is  insufficient,  the 
Commissioner may, by notice in writing stating his reasons, call upon the employer to show cause why he 
should not make a further deposit within such time as may be stated in the notice. 

(2)  If  the  employer  fails  to  show  cause  to  the  satisfaction  of  the  Commissioner,  the  Commissioner 
may  make  an  award  determining  the  total  amount  payable,  and  requiring  the  employer  to  deposit  the 
deficiency.] 

23. Powers and procedure of Commissioners.—The Commissioner shall have all the powers of a 
Civil Court under the Code of Civil Procedure, 1908 (5 of 1908), for the purpose of taking evidence on 
oath  (which  such  Commissioner  is  hereby  empowered  to  impose)  and  of  enforcing  the  attendance  of 
witnesses  and  compelling  the  production  of  documents  and  material  objects,  3[and  the  Commissioner 
shall be deemed to be a Civil Court for all the purposes of 4[section 195 and of Chapter XXVI of the Code 
of Criminal Procedure, 1973 (2 of 1974)]. 

5[24. Appearance of parties.—Any appearance, application or act required to be made or done by 
any person before or to a Commissioner (other than an appearance of a party which is required for the 
purpose  of  his  examination  as  a  witness)  may  be  made  or  done  on  behalf  of  such  person  by  a  legal 
practitioner  or  by  an  official  of  an  Insurance  Company  or  a  registered Trade  Union  or  by  an  Inspector 
appointed under sub-section (1) of section 8 of the Factories Act, 1948 (63 of 1948), or under sub-section 
(1)  of  section  5  of  the  Mines  Act,  1952  (35  of  1952),  or  by  any  other  officer  specified  by  the  State 
Government  in  this  behalf,  authorised  in  writing  by  such  person,  or,  with  the  permission  of  the 
Commissioner, by any other person so authorised.]6 

25.  Method  of  recording  evidence.—The  Commissioner  shall  make  a  brief  memorandum  of  the 
substance  of  the  evidence  of  every  witness  as  the  examination  of  the  witness  proceeds,  and  such 
memorandum shall be written and signed by the Commissioner with his own hand and shall form part of 
the record: 

Provided that, if the Commissioner is prevented from making such memorandum, he shall record the 
reason of his inability to do so and shall cause such memorandum to be made in writing from his dictation 
and shall sign the same, and such memorandum shall form part of the record: 

1. Ins. by Act 15 of 1933, s. 16. 
2. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010). 
3. Ins. by Act 5 of 1929, s. 5. 
4. Subs. by Act 30 of 1995, s. 12, for certain words (w.e.f.15-9-1995). 
5. Subs. by Act 8 of 1959, s. 14, for s. 24 (w.e.f.1-6-1959). 
6. In the application of the Act to Bengal, new ss. 24A and 24B have been ins. here by Ben. Act 6 of 1942, s. 4. 

24 

 
                                                      
Provided further that the evidence of any medical witness shall be taken down as nearly as may be 

word for word. 

1[25A. Time limit of disposal of cases relating to compensation.—The Commissioner shall dispose 
of the  matter  relating  to compensation  under  this  Act  within  a period  of  three months  from  the  date  of 
reference and intimate the decision in respect thereof within the said period to the employee.] 

26.  Costs.—All  costs,  incidental  to  any  proceedings  before  a  Commissioner,  shall,  subject  to  rules 

made under this Act, be in the discretion of the Commissioner. 

27. Power to submit eases.—A Commissioner may, if he thinks fit, submit any question of law for 
the  decision  of  the  High  Court  and,  if  he  does  so,  shall  decide  the  question  in  conformity  with  such 
decision. 

28.  Registration of Agreements.—(1) Where the amount of any lump sum payable as compensation 
has been settled by agreement, whether by way or redemption of a half-monthly payment or otherwise, or 
where  any  compensation  has  been  so  settled  as  being  payable  2[to  a  woman  or  a  person  under  a  legal 
disability] 3*** a memorandum thereof shall be sent by the employer to the Commissioner, who shall, on 
being satisfied as to its genuineness, record the memorandum in a register in the prescribed manner: 

Provided that— 

(a)  no  such  memorandum  shall  be  recorded  before  seven  days  after  communication  by  the 

Commissioner of notice to the parties concerned; 

4***** 
(c) the Commissioner may at any time rectify the register; 

(d)  where  it  appears  to  the  Commissioner  that  an  agreement  as  to  the  payment  of  a  lump  sum 
whether  by  way  of  redemption  of  a  half-monthly  payment  or  otherwise,  or  an  agreement  as  to  the 
amount of compensation payable 5[to a woman or a person under a legal disability] 6*** ought not to 
be registered by reason of the inadequacy of the sum or amount, or by reason of the agreement having 
been  obtained  by  fraud  or  undue  influence  or  other  improper  means,  he  may  refuse  to  record  the 
memorandum of the agreement 7[and may make such order] including an order as to any sum already 
paid under the agreement, as he thinks just in the circumstances. 

(2) An agreement for the payment of compensation which has been registered under sub-section (1) 
shall be enforceable under this Act notwithstanding anything contained in the Indian Contract Act, 1872 
(9 of 1872), or in any other law for the time being in force. 

29.  Effect  of  failure  to  register  agreement.—Where  a  memorandum  of  any  agreement  the 
registration  of  which  is  required  by  section  28,  is  not  sent  to  the  Commissioner  as  required  by  that 
section,  the  employer  shall  be  liable  to  pay  the  full  amount  of  compensation  which  he  is  liable  to  pay 
under the provisions of this Act, and notwithstanding an thing contained in the proviso to sub-section (1) 
of section 4, shall not, unless the Commissioner otherwise directs, be entitled to deduct more than half of 
any amount paid to the 8[employee] by way of compensation whether under the agreement or otherwise. 

30.  Appeals.—(1)  An  appeal  shall  lie  to  the  High  Court  from  the  following  orders  of  a 

Commissioner, namely:— 

1. Ins. by Act 45 of 2009, s. 9 (w.e.f.18-1-2010). 
2. Subs. by Act 5 of 1929, s. 6, for certain words. 
3. The words “or to a dependant” omitted by Act 7 of 1924, s. 3 and the Second Schedule. 
4. Clause (b) omitted by Act 5 of 1929, s. 6. 
5. Subs. by Act 5 of 1929, s. 6, for certain words. 
6. The words “or to any dependant” omitted by Act 7 of 1924, s. 3 and the Second Schedule. 
7. Subs. by Act 7 of 1924, s. 2 and Sch. I, for “or may make such order”. 
8. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010). 

25 

 
                                                      
(a)  an  order  awarding  as  compensation  a  lump  sum  whether  by  way  of  redemption  of  a  half-

monthly payment or otherwise or disallowing a claim in full or in part for a lump sum; 

1[(aa) an order awarding interest or penalty under section 4A;] 

(b) an order refusing to allow redemption of a half-monthly payment; 

(c) an order providing for the distribution of compensation among the dependants of a deceased 

6[employee], or disallowing any claim of a person alleging himself to be such dependant; 

(d)  an  order  allowing  or  disallowing  any  claim  for  the  amount  of  an  indemnity  under  the 

provisions of sub-section (2) of section 12; or 

(e) an order refusing to register a memorandum of agreement or registering the same or providing 

for the registration of the same subject to conditions: 

Provided that no appeal shall lie against any order unless a substantial question of law is involved in 
the appeal and, in the case of an order other than an order such as is referred to in clause (b), unless the 
amount in dispute in the appeal is not less than 2[ten thousand rupees or such higher amount as the Central 
Government may, by notification in the Official Gazette, specify]: 

Provided, further, that no appeal shall lie in any case in which the parties have agreed to abide by the 
decision of the Commissioner, or in which the order of the Commissioner gives effect to an agreement 
come to by the parties: 

3[Provided further that no appeal by an employer under clause (a) shall lie unless the memorandum of 
appeal is accompanied by a certificate by the Commissioner to the effect that the appellant has deposited 
with him the amount payable under the order appealed against.] 

(2) The period of limitation for an appeal under this section shall be sixty days. 

(3) The provisions of section 5 of 4[the Indian Limitation Act, 1963 (36 of 1963)] shall be applicable 

to appeals under this section. 

30A.[Withholding  of  certain  payments  pending  decision  of  appeal].—Omitted  by  the  Employee’s 

Compensation (Amendment) Act 2017, s. 5 (w.e.f. 15-5-2017). 

31. Recovery.—The Commissioner may recover is an arrear of land-revenue any amount payable by 
any person under this Act, whether under an agreement for the payment of compensation or otherwise, 
and  the  Commissioner  shall  be  deemed  to  be  a  public  officer  within  the  meaning  of  section  5  of  the 
Revenue Recovery Act, 1890 (1 of 1890)5. 

CHAPTER IV 

RULES 

32. Power of the State Government to make rules.—(/) The 6[State Government] may make rules7 

to carry out the purposes of this Act. 

(2)  In  particular  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a) for prescribing the intervals at which and the conditions subject to which an application for 

review may be made under section 6 when not accompanied by a medical certificate; 

1. Ins. by Act 8 of 1959, s. 15 (w.e.f.1-6-1959). 
2. Subs. by Act 11 of 2017, s. 4, for “three hundred rupees” (w.e.f.15-5-2017). 
3. Ins. by Act 15 of 1933, s. 17. 
4. Subs. by Act 30 of 1995, s. 13, for certain words (w.e.f.15-9-1995). 
5. In the application of the Act to Bengal, a new s. 31A has been ins. here by the Bengal Touts Act, 1942 (Ben. 5 of 1942), s. 12. 
6. Subs. by the A. O. 1937, for “G. G. in C”, 
7. For the Workmen’s Compensation Rules, 1924, see Gazette of India, 1924, Pt. I, p 586. 

26 

 
                                                      
(b) for prescribing the intervals at which and the conditions subject to, which a 1[employee] may 

be required to submit himself for medical examination under sub-section (1) of section 11; 

(c) for prescribing the procedure to be followed by Commissioners in the disposal of cases under 

this Act and by the parties in such cases; 

(d)  for  regulating  the  transfer  of  matters  and  cases  from  one  Commissioner  to  another  and  the 

transfer of money in such cases; 

(e) for prescribing the manner in which money in the hands of a Commissioner may be invested 
for  the  benefit  of  dependants  of  a  deceased  7[employee]  and  for  the  transfer  of  money  so  invested 
from one Commissioner to another; 

(f) for the representation in proceedings before Commissioners of parties who are minors or are 

unable to make an appearance;2 

(g) for prescribing the form and manner in which memoranda of agreements shall be presented 

and registered; 

(h) for the withholding by Commissioners, whether in whole or in part of half-monthly payments 

pending decision on applications for review of the same;3*** 
* 

2* 
2[(i) for regulating the scales of costs which may be allowed in proceedings under this Act; 
(j) for prescribing and determining the amount of the fees payable in respect of any proceedings 

* 

* 

* 

before a Commissioner under this Act; 

(k) for the maintenance by Commissioners of registers and records of proceedings before them; 
(l)  for  prescribing 

the  classes  of  employers  who  shall  maintain  notice-books  under  

sub-section (3) of section 10, and the form of such notice-books; 

(m) for prescribing the form of statement to be submitted by employers under section 10A; 4***  
(n)  for  prescribing  the  cases  in  which  the  report  referred  to  in  section  10B  may  be  sent  to  an 

authority other than the Commissioner;] 

5[(o)  for  prescribing  abstracts  of  this  Act  and  requiring  the  employers  to  display  notices 

containing such abstracts; 

(p)  for  prescribing  the  manner  in  which  diseases  specified  as  occupational  diseases  may  be 

diagnosed; 

(q) for prescribing the manner in which diseases may be certified for any of the purposes of this 

Act; 

(r)  for  prescribing  the  manner  in  which,  and  the  standards  by  which,  incapacity  ,may  be 

assessed.] 
6[(3) Every rule made under this section shall be laid, as soon as may be after it is made, before the 

State Legislature]. 

33.[Power of Local Government to make rules.] Rep. by the A.O. 1937. 
34. Publication of rules.—(1) The power to make rules conferred by 7[section 32] shall be subject to 

the condition of the rules being made after previous publication. 

(2) The date to be specified in accordance with clause (3) of section 23 of the General Clauses Act, 
1897 GO of 1897); as that after which a draft of rules proposed to be made under section 32 8*** will be 
the  date  on  which  
taken 
the draft of the proposed rules was published for general information. 

into  consideration,  shall  not  be 

three  months  from 

than 

less 

1. Subs. by Act 45 of 2009, s. 5, for “workman” (w.e.f.18-1-2010). 
2. In the application of the Act of Bengal, new clauses (ff), (ff1) and (ff2) have been ins. here by Ben, Act 6 of 1942, s. 5. 
3. The word “and” at the end of cl. (h) and the original cl. (i) omitted, and the new cls, (i) to (n), which were the same as cls, (a) 

to (f) of s. 33, ins. by the A. O. 1937. 

4. The word “and” omitted by Act 58 of 1960, s. 3 and the Second Schedule. 
5. Ins. by Act 8 of 1959, s. 16 (w.e.f.1-6-1959). 
6. Ins. by Act 4 of 1986, s. 2 and Schedule (w.e.f.15-5-1986). 
7. Subs. by the A.O. 1937, for “sections 32 and 33”. 
8. The words and figures “or section 33” rep.; ibid. 

27 

 
 
 
 
 
 
 
                                                      
(3) Rules so made shall be published in 1*** the Official Gazette 2*** and, on such publication, shall 

have effect as if enacted in this Act. 

3[35. Rules to give effect to arrangements with other countries for the transfer of money paid as 
compensation.—4[(1)] The Central Government may by notification in the Official Gazette, make rules 
for the transfer 5*** 6[to any foreign country] of money 7[deposited with] a Commissioner under this Act 
8[which has been awarded to or may be due to], any person residing or about to reside in  9[such foreign 
country] and for the receipt 10[distribution] and administration in 11[any State] of any money 12[deposited] 
under the  law  relating  to  Workmen’s  compensation  13***  14[in  any  foreign  country],  15[which  has  been 
awarded to, or may be due to] any person residing or about to reside in 11[any State]:] 

10[Provided that no sum deposited under this Act in respect of fatal accidents shall be so transferred 
without  the  consent  of  the  employer  concerned  until  the  Commissioner  receiving  the  sum  has  passed 
orders determining its distribution and apportionment under the provisions of sub-section (4) and (5) of 
section 8.] 

(2) Where money deposited with a Commissioner has been so transferred in accordance with the rules 
made  under  this  section,  the  provisions  elsewhere  contained  in  this  Act  regarding  distribution  by  the 
Commissioner of compensation’ deposited with him shall cease to apply in respect of any such money. 

16[36. Rules made by Central Government to be laid before Parliament.—Every rule made under 
this Act by the Central Government shall be laid as soon as may be after it is made before each House of 
Parliament while it is in session for a total period of thirty days which may be comprised in one session or 
in 17[two or more successive sessions, and if, before the expiry of the session immediately following the 
session or the successive sessions aforesaid], both Houses agree in making any modification in the rule or 
both  Houses  agree  that  the  rule  should  not  be  made,  the  rule  shall  thereafter  have  effect  only  in  such 
modified  form  or  be  of  no  effect,  as  the  case  may  be;  so,  however  that  any  such  modification  or 
annulment shall be without prejudice to the validity of anything previously done under that rule.] 

1. The words “The Gazette of India or” rep., by the A. O. 1937. 
2. The words “as the case may be” rep., ibid. 
3. Ins. by Act 15 of 1933, s. 20. 
4. The original s. 35 renumbered as sub-section (1) of that section by Act 7 of 1937, s. 2. 
5. The words “to any Part B State or” ins. by. the A.O. 1948, omitted by Act 3 of 1951, s. 3 and Sch. 
6. Subs. by Act 22 of 1984, s. 5, for certain words (w.e.f.1-7-1984). 
7. Subs. by Act 7 of 1937, s. 2, for “paid to”. 
8. Subs. by s. 2, ibid., for “for the benefit of”. 
9. Subs. by Act 22 of 1984, -s. 5, for “such part of country” (w.e.f.1-7-1984). 
10. Ins. by Act 7 of 1937, s. 2. 
11. Subs. by Act 3 of 1951, s. 3 and Sch., for “a Part A State or Part C State”. 
12. Subs. by Act 7 of 1937, s. 2, for “awarded”. 
13. Of the words “in any Part B State or” ins. by the A.O. 1950, first five words were omitted by Act 3 of 1951, s. 3 and Sch., and 

the word “or” was omitted by Act 36 of 1957, s. 3 and Sch. II. 
14. Subs. by Act 22 of 1984, s. 5, for certain words (w.e.f.1-7-1984). 
15. Subs. by Act 7 of 1937, s. 2, for “and applicable for the benefit of”. 
16. Ins. by Act 64 of 1962, s. 8 (w.e.f.1-2-1963). 
17. Subs. by Act 65 of 1976, s. 3, for certain words (w.e.f.21-5-1976). 

28 

 
 
 
                                                      
1[SCHEDULE I  
[See sections 2(1) and (4)]  
2[PART I  
LIST OF INJURIES DEEMED TO RESULT IN PERMANENT TOTAL DISABLEMENT] 

Description of injury 

Percentage of loss 
of earning 
capacity 

Serial 
No. 

1. 

2. 

3. 

4. 

5. 

6. 

Loss of both hands or amputation at higher sites……………………………. 

Loss of a hand and a foot……………………………………………………. 

Double amputation through leg or thigh, or amputation through leg or thigh 
on one side and loss of other foot………………………………………….. 

Loss of sight to such an extent as to render the claimant unable to perform 
any work for which eye sight is essential…………………………………... 

Very severe facial disfigurement…………………………………………… 

Absolute deafness………………………………………………………… 

3[PART II 

LIST OF INJURIES DEEMED TO- RESULT IN PERMANENT PARTIAL DISABLEMENT] 
Amputation cases—upper limbs (either arm) 

4[1] Amputation through shoulder joint……………………………………………………… 

4[2] Amputation below shoulder with stump less than 5[20.32 cms.] from tip of acromion  …. 

6[3] 

 6[4] 

6[5] 

6[6] 

6[7] 

6[8] 

6[9] 

6[10] 

6[10A 

Amputation from 7[20.32 cms] from tip of acromion to less than 7[11.43cms.] 
below tip of olecranon……. 

Loss of a hand or of the thumb and four fingers of one hand or amputation from 
6[11.43] below tip of olecranon……………………………………………………. 

Loss of thumb…………………………………………… 

Loss of thumb and its metacarpal bone…………………………………………… 

Loss of four fingers of one hand……………………………………………… 

Loss of three fingers of one hand……………………………………………… 

Loss of two fingers of one hand…………………………………………………… 

Loss of terminal phalanx of thumb……………………………………………… 

Guillotine Amputation of tip of thumb without loss of bone……… 

1. Subs. by Act 8 of 1959, s. 17, for the first Schedule I (w.e.f. 1-6-1959). 
2. Subs. by Act 64 of 1962, s. 9, for heading (w.e.f. 1-2-1963). 
3. Ins. by s. 9, ibid. (w.e.f.1-2-1963). 
4. Serial Nos. 7 to 54 renumbered as serial Nos. 1 to 48 respectively by s. 9, ibid. (w.e.f.1-2-1963). 
5. Subs. by Act 30 of 1995, s. 14, for “8” (w.e.f.15-9-1995). 
6. Serial Nos. 7 to 54 renumbered as serial Nos. 1 to 48 respectively by Act 64 of 1962, s. 9 (w.e.f.1-2-1963). 
7. Subs. by Act 30 of 1995, s. 14 for certain numbers (w.e.f.15-9-1995). 

29 

100 

100 

100 

100 

100 

100 

90 

80 

70 

60 

30 

40 

50 

30 

20 

20 

10] 

 
 
 
 
 
 
 
                                                      
Description of injury 

Percentage of loss 
of earning 
capacity 

Serial 
No. 

1[11] 

1[12] 

1[13] 

1[14] 

1[15] 

1[16] 

1[17] 

1[18] 

1[19] 

1[20] 

1[21] 

1[22] 

1[23] 

1[24] 

1[25] 

1[26] 

Amputation cases—lower limbs 

Amputation of both feet resulting in end-bearing tumps………………… 

Amputation through both feet proximal to the metatarso-phalangeal 
joint… 

Loss of all toes of both feet through the metatarso-phalangeal joint……… 

Loss of all toes of both feet proximal to the proximal interphalangeal 
joint……… 

Loss of all toes of both feet distal to the proximal interphalangeal 
joint………… 

Amputation at hip……………………………………………………… 

Amputation below hip with stump not exceeding 2[12.70 cms.] in length 
measured from tip of great trenchanter…………………………………… 

Amputation below hip with stump exceeding 2[12.70 cms.] in length 
measured from tip of great trenchanter but not beyond middle 
thigh……………………… 

Amputation below hip middle thigh to 2[8.89cms.] blownee…………… 

Amputation below knee with stump exceeding [8.89] but not exceeding 
5”……….. 

Amputation below knee with stump exceeding 2[12.70 cms.]…………… 

Amputation of one foot resulting in end-bearing………………………… 

Amputation through one foot proximal to the metatarso-phalangeal 
joint…………….. 

Loss of all toes of one foot through the metatarso-phalangeal 
joint………………… 

Loss of one eye, without complication, the other being 
normal………………… 

Other injuries 

Loss of vision of one eye, without complications or disfigurement of eye-
ball, the other being normal…………………………………………… 

3[26A] 

Loss of partial vision of one eye……………………………………… 

1. Subs. by Act 30 of 1995, s. 14 for certain numbers (w.e.f.15-9-1995). 
2. Serial No. 7 to 54 as serial Nos. 1 to 48 respectively by Act 64 of 1962 s. 9 (w.e.f. 1-2-1963). 
3. Ins. by s. 14, ibid. (w.e.f.15-9-1995). 

30 

90 

80 

40 

30 

20 

90 

80 

70 

60 

[50]1 

[50]1 

[50]1 

50 

20 

40 

30 

10 

 
 
 
 
                                                      
Serial 
No. 

Loss of— 

1[27] 
1[28] 
1[29] 
1[30] 

1[31] 
1[32] 
1[33] 
1[34] 

1[35] 
1[36] 
1[37] 
1[38] 

1[39] 
1[40] 

1[41] 
1[42] 

1[43] 

1[44] 

1[45] 
1[46] 

Description of injury 

A.—Fingers of right or left  

hand Index finger 

Percentage 
of loss of 
earning 
capacity 

Whole 

Two phalanges 

One phalanx 

Guillotine amputation of tip without loss of bone 

Middle Finger 

Whole 

Two phalanges 

One phalanx 

Guillotine amputation of tip without loss of bone 

Ring or little finger 

Whole 

Two phalanges 

One phalanx 

Guillotine amputation of tip without loss of bone 

B.—Toes of right or left foot  

Great toe 

Through metatarso-phalangcal joint 

Part, with some loss of bone 

Any other toe 

Through metatarso-phalangcal joint 

Part, with some loss of bone 

Two toes of one foot, excluding great toe 

Through metatarso-phalangcal joint 

Part, with some loss of bone 

Three toes of one foot, excluding great toe 

Through metatarso-phalangcal joint 

Part, with some loss of bone 

14 

11 

9 

5 

12 

9 

7 

4 

7 

6 

5 

2 

14 

3 

3 

1 

5 

2 

6 

3 

1. Serial Nos. 7 to 54 renumbered as serial Nos. 1 to 48 respectively by Act 64 of 1962, s. 9 (w.e.f.1-2-1963). 

31 

 
 
 
 
                                                      
Serial 
No. 

1[47] 

1[48] 

Description of injury 

Four toes of one foot, excluding great toe 

Through metatarso-phalangcal joint 

Part, with some loss of bone 

Percentage 
of loss of 
earning 
capacity 

9 

3.] 

2[NOTE.—Complete and permament loss of the use of any limb or member referred to in this Schedule 
shall be deemed to be the equivalent of the loss of that limb or member.] 

1. Serial Nos. 7 to 54 renumbered as serial Nos. 1 to 48 respectively by Act 64 of 1962, s. 9 (w.e.f.1-2-1963). 
2. Ins. by Act 58 of 1960, s. 3 and Sch. II. 

32 

 
 
 
                                                      
SCHEDULE II 

[See1[section 2 (1) (dd)]] 

LIST OF PERSONS WHO, SUBJECT TO THE PROVISIONS OF 1[SECTION 2 (1) (dd)],’ARE INCLUDED IN THE  
DEFINITION OF 2[EMPLOYEES] 

The following persons are employee’s within the meaning of  1[section 2 (1) (dd)] and subject to the 

provisions of that section, that is to say, any person who is— 

3[4[(i) 5[employed in railways], in connection with the operation  6[repair or maintenance of a lift 
or a vehicle propelled by steam or other mechanical power or by electricity or in connection with the 
loading or unloading of any such vehicle; or 

(ii)  employed,  7***,  in  any  premises  wherein  or  within  the  precincts  whereof  a  manufacturing 
process as defined in clause (k) of section 2 of the Factories Act, 1948 (63 of 1948) is being carried 
on,  or  in  any  kind  of  work  whatsoever  incidental  to  or  connected  with  any  such  manufacturing 
process  or  with  the  article  made  8[whether  or  not  employment  in  any  such  work  is  within  such 
premises or precincts], and steam, water or other mechanical power or electrical power is used; or 

(iii) employed for the purpose of making, altering, repairing, ornamenting, finishing or otherwise 

adapting for use, transport or sale any ‘article or part of an article in any premises 9***; 10*** 

7[Explanation.—for  the  purposes  of  this  clause,  persons  employed  outside  such  premises  or 
precincts  but  in  any  work  incidental  to,  or  connected  with,  the  work  relating  to  making,  altering, 
repairing, ornamenting, finishing or otherwise adapting for use, transport or sale any article or part of 
an ‘article shall be deemed to be employed within such premises or precincts; or] 

(iv)  employed  in  the  manufacture  or  handling  of  explosives  in  connection  with  the  employer’s 

trade or business; or 

(v)  employed,  in  any  mine  as  defined  in  clause  (j)  of  section  2  of  the  Mines  Act,  1952  (35  of 
1952),  in  any  mining  operation  or  in  any  kind  of  work,  11***,  incidental  to  or  connected  with  any 
mining operation or with the mineral obtained, or in any kind of work whatsoever below ground; or 

(vi) employed as the master or as a seaman of— 

(a) any ship which is propelled wholly or in part by steam or other mechanical power or by 

electricity or which is towed or intended to be towed by a ship so propelled; or 

12*   

* 

* 

* 

* 

(c) any sea-going ship not included in sub-clause (a)  13*** provided with sufficient area for 

navigation under sails alone; or 

1. Subs. by Act 45 of 2009, s. 10, for “section 2(1)(n)” (w.e.f.18-1-2010). 
2. Subs. by s. 5, ibid., for “workmen” (w.e.f.18-1-2010). 
3. Subs. by Act 15 of 1933, s. 21, for cls. (i) to (xiii). 
4. Subs. by Act 8 of 1959, s. 18, for cls. (i) to (ix) (w.e.f.1-6-1959). 
5. Subs. by Act 45 of 2009, s. 10, for “employed, otherwise than in a clerical capacity or on a railway” (w.e.f.18-1-2010). 
6. Ins. by Act 30 of 1995, s. 15 (w.e.f.15-9-1995). 
7. The words “otherwise than in a clerical capacity” omitted by Act 45 of 2010, s. 10 (w.e.f.18-1-2010). 
8. Ins. by Act 64 of 1962, s. 10 (w.e.f.1-2-1963). 
9. The words “wherein or within the precincts whereof twenty or more persons are so employed” omitted by Act 45 of 2009, s. 

10 (w.e.f.18-1-2010). 

10. The word “or” omitted by Act 64 of 1962, s. 10 (w.e.f.1-2-1963). 
11. The word “other than clerical work” omitted by Act 45 of 2009, s. 10 (w.e.f.18-1-2010). 
12. Clause (b) omitted by s. 10, ibid. (w.e.f.18-1-2010). 
13. The words, brackets and letter “or sub-clause (b)” omitted by s. 10, ibid. (w.e.f.18-1-2010). 

33 

 
 
 
 
 
 
                                                      
(vii) employed for the purpose of— 

(a)  loading,  unloading,  fuelling,  constructing,  repairing,  demolishing,  cleaning  or  painting 
any ship of which he is not the master or a member of the crew, or handling or transport within 
the limits of any port subject to  1[(the Ports Act, 1908 (5 of 1908) or the Major Port Trusts Act, 
1963  (38  of  1963)],  of  goods  which  have  been  discharged  from  or  are  to  be  loaded  into  any 
vessel; or 

(b) warping a ship through the lock; or 

(c) mooring and unmooring ships at harbour wall berths or in pier; or 

(d) removing or replacing dry dock caisoons when vessels are entering or leaving dry docks; 

or 

(e) the docking or undocking of any vessel during an emergency; or 

(f)  preparing  splicing  coir  springs  and  check  wires,  painting  depth  marks  on  lock-sides, 
removing or replacing fenders whenever necessary, landing of gangways, maintaining life-buoys 
up to standard or any other maintenance work of a like nature; or 

(g) any work on jolly-boats for bringing a ship’s line to the wharf; or 

(viii) employed in the construction, maintenance, repair or demolition of—  

(a)  any  building  which  is  designed  to  be  or  is  or  has  been  more  than  one  storey  in  height 

above the ground or twelve feet or more from the ground level to the apex of the roof; or 

(b)  any  dam  or  embankment  which  is  twelve  feet  or  more  in  height  from  its  lowest  to  its 

highest point; or 

(c) any road, bridge, tunnel or canal; or 

(d) any wharf, quay, sea-wall or other marine work including any moorings ofships, or 

(ix) employed in setting up, maintaining, repairing or taking down any telegraph or telephone line 
or post or any overhead electric line or cable or post or standard or fittings and fixtures for the same; 
or 

(x)  employed,  2***,  in  the  construction,  working,  repair  or  demolition  of  any  aerial  ropeway, 

canal, pipe-line, or sewer; or 

(xi) employed in the service of any fire brigade; or 

(xii)  employed  upon  a  railway  as  defined  in  3[clause  (31)  of  section  2  and  sub-section  (1)  of 
section 197 of the Railways Act, 1890 (9 of 1890)], either directly or through a sub-contractor, by a 
person fulfilling a contract with the railway administration; or 

(xiii) employed as an inspector, mail guard, sorter or van peon in the Railway Mail Service 4[or as 
a telegraphist or as a postal or railway Signaller], or employed in any occupation ordinarily involving- 
outdoor work in the Indian Posts and Telegraphs Department; or 

(xiv) employed, 5***, in connection with operations for winning natural petroleum or natural gas; 

or 

1. Subs. by Act 30 of 1995, s. 15 for certain words (w.e.f.15-9-95). 
2. The words “otherwise than in a clerical capacity” omitted by Act 45 of 2009, s. 10 (w.e.f.18-1-2010). 
3. Subs. by Act 30 of 1995, s. 15, for certain words (w.e.f.15-9-1995). 
4. Ins. by Act 8 of 1959, s. 18 (w.e.f.1-6-1959). 
5. The words “otherwise than in a clerical capacity” omitted by Act 45 of 2009, s. 10 (w.e.f.18-1-2010). 

34 

 
 
 
                                                      
(xv) employed in any occupation involving blasting operation; or 

(xvi)  employed  in  the  making  of  any  excavation  1***  or  explosives  have  been  used,  or  whose 

depth from its highest to its lowest point exceeds 2[twelve] feet; or 

(xvii) employed in the operation of any ferry boat capable of carrying more than ten persons; or 

3[(xviii)  employed  on  any  estate  which  is  maintained  for  the  purpose  of  growing  cardamom, 

cinchona, coffee, rubber or tea; or] 

4[(xix) employed,  5***, in the generating, transforming, transmitting or distribution of electrical 

energy or in generation or supply of gas; or] 

(xx) employed in a lighthouse as defined in clause (d) of section 2 of the Indian Lighthouse Act, 

1927 (17 of 1927); or 

(xxi)  employed  in  producing  cinematograph  pictures  intended  for  public  exhibition  or  in 

exhibiting such pictures; or 

(xxii) employed in the training, keeping or working of elephants or wild animals; or 

6[(xxiii) employed in the tapping of palm-trees or the felling or logging of trees, or the transport of 

timber by inland waters, or the control or extinguishing of forest fires; or 

(xxiv) employed in operations for the catching or hunting of elephants or other wild animals; or] 

7[(xxv) employed as a diver; 1[or 

(xxvi) employed in the handling or transport of goods in, or within the precincts of,— 

(a) any warehouse or other place in which goods are stored, 8***; or 

(b) any market 9***; or 

(xxvii) employed in any occupation involving the handling and manipulation of radium or X-rays 

apparatus, or contact with radio-active substances;] 10[or] 

10(xxviii) employed in or in connection with the construction, erection, dismantling, operation or 

maintenance of an aircraft as defined in section 2 of the Indian Aircraft Act, 1934 (22 of 1934); or 

(xxix)  4[employed  in  horticultural  operations,  forestry,  bee-keeping  or  farming”  by  tractors  or 

other contrivances driven by steam or other mechanical power or by electricity; or 

(xxx) employed, 11***, in the construction, working, repair or maintenance of a tubewell; or 

(xxxi) employed in the maintenance, repair or renewal of electric fittings in any building; or 

(xxxii) employed in a circus.] 

1.  The  words  “in  which  on  any  one day  of  the  preceding  twelve  months  more  than  twenty-five  persons  have  been  employed” 

omitted by Act 45 of 2009, s. 10 (w.e.f.18-1-2010). 

2. Subs. by Act 8 of 1959, s. 18, for “twenty” (w.e.f.1-6-1959). 
3. Subs. by Act 45 of 2009, s. 10 for item (xviii) (w.e.f.18-1-2010). 
4. Subs. by Act 30 of 1995, s. 15, for item (xix) and “employed in farming” (w.e.f.15-9-1995). 
5. The words “otherwise than in a clerical capacity” omitted by Act 45 of 2009, s. 10 (w.e.f.18-1-2010). 
6. Ins. by Act 9 of 1938, s. 11. 
7. Original cl. (xxiii) renumbered (xxv) by s. 11, ibid. 
8. The words “and in which on any one day of the preceding twelve months ten or more persons have been so employed” omitted 

by Act 45 of 2009, s. 10 (w.e.f.18-1-2010). 

9. The words “in which on any one day of the preceding twelve months fifty or more persons have been so employed” omitted by 

s. 10, ibid. (w.e.f.18-1-2010). 

10. Ins. by Act 8 of 1959, s. 18 (w.e.f. 1-6-1959). 
11. The words “otherwise than in a clerical capacity” omitted by Act 45 of 2009, s. 10 (w.e.f.18-1-2010). 

35 

 
                                                      
1[(xxxiii) employed as watchman in any factory or establishment; or 

(xxxiv) employed in any operation in the sea for catching fish; or 

(xxxv)  employed  in  any  employment  which  requires  handling  of  snakes  for  the  purpose  of 
extraction  of  venom  or  for  the  purpose  of  looking  after  snakes  or  handling  any  other  poisionous 
animal or insect; or 

(xxxvi) employed in handling animals like horses, mules and bulls; or 

(xxxvii) employed for the purpose of loading or unloading an mechanically propelled vehicle or in 

the handling or transport of goods which have been loaded in such vehicles; or 

(xxxviii) employed in cleaning of sewer lines or septic tanks within the limits of a local authority; 

or 

(xxxix) employed on surveys and investigation, exploration or gauge or dischange observation of 
rivers including drilling operations, hydrological observations and flood forecasting activities ground 
water surveys and exploration; or 

(xl) employed in cleaning of jungles or reclaiming land or ponds2***; or 

(xli) employed in cultivation of land or rearing and maintenance of live-stock or forest operations 

of fishing 2***; or 

(xlii)  employed  in  installation,  maintenance  or  repair  of  pumping  equipment  used  for  lifting  of 

water from wells, tubewells, ponds, lakes, streams and the like; or 

(xliii) employed in the construction, boring or deepening of an open well or dug well, bore well, 

bore-cum-dug well, filter point and the like; or 

(xliv) employed in spraying and dusting of insecticides or pesticides in agricultural operations or 

plantations; or 

(xlv) employed in mechanised harvesting and threshing operations; or 

(xlvi) employed in working or repair or maintenance of bulldozers, tractors, power tillers and the 

like; or 

(xlvii) employed as artist for drawing pictures on advertisement boards at a height of 3.66 metres 

or more from the ground level; or 

(xlviii) employed in any newspaper establishment as defined in the Working Journalists and Other 
Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 and engaged 
in outdoor work]. 

Explanation.—In this Schedule, “the preceding twelve months” relates in any particular case to 

the twelve months ending with the day on which the accident in such case occurred.] 

1. Ins. by Act 30 of 1995, s. 15 (w.e.f.15-9-1995). 
2.  The  words  “in  which  on  any  one day  of  the  preceding  twelve  months  more  than  twenty-five  persons  have  been  employed” 

omitted by Act 45 of 2009, s. 10 (w.e.f.18-1-2010). 

36 

 
 
 
 
                                                      
1[SCHEDULE III 

(See section 3) 

LIST OF OCCUPATIONAL DISEASES 

Serial 
No 

(1) 

Occupational disease 

Employment 

(2) 

(3) 

PART A 

1.  

Infectious and parasitic diseases contracted 
in an occupation where there is a particular 
risk of contamination. 

(a)  All  work  involving  exposure  to  health  or 
laboratory work; 

(b)  All  work  involving  exposure  to  veterinary 
work; 

(c)  Work  relating  to  handling  animals,  animal 
carcasses,  part  of  such  carcasses,  or  merchandise 
which may have been contaminated by animals or 
animal carcasses; 

(d)  other  work  carrying  a  particular  risk  of 
contamination. 

2.   Diseases  caused  by  work  in  compressed 

All work involving exposure to the risk concerned. 

air. 

3.   Diseases  caused  by  lead  or  its  toxic 

All work involving exposure to the risk concerned. 

compounds. 

4.  

5.  

Poisoning by nitrous fumes. 
Poisoning by 
organophosphoruscompounds. 

All work involving exposure to the risk concerned. 

All work involving exposure to the risk concerned. 

PART B 

1.   Diseases caused by phosphorus or its toxic 

All work involving exposure to the risk concerned. 

2. 

3. 

4. 

5. 

6. 

7. 

compounds. 

Diseases  caused  by  mercury  or  its  toxic 
compounds. 

Diseases  caused  by  benzene  or  its  toxic 
homologues. 

Diseases  caused  by  nitro  and  amido  toxic 
derivatives of benzene or its homologues. 

Diseases  caused  by  chromium  or  its  toxic 
compounds. 

Diseases  caused  by  arsenic  or  its  toxic 
compounds. 

All work involving exposure to the risk concerned. 

All work involving exposure to the risk concerned. 

All work involving exposure to the risk concerned. 

All work involving exposure to the risk concerned. 

All work involving exposure to the risk concerned. 

Diseases  caused  by  radioactive  substances 
and ionising radiations; 

All  work  involving  exposure  to  the  action  of 
radioactive substances or ionising radiations. 

1. Subs. by Act 22 of 1984, s. 6 for Sch. (w.e.f.1-7-1984). 

37 

 
                                                      
Serial 
No 

(1) 
  8. 

9. 

Occupational disease 

Employment 

(2) 
Primary epitheliomatous cancer of the skin 
caused by tar, pitch, bitumen, mineral oil, 
anthracene, or the compounds, products or 
residues of these substances. 
Diseases caused by the toxic halogen 
derivatives of hydrocarbons (of the 
aliphatic and aromatic series). 

(3) 
All work involving exposure to the risk concerned. 

All work involving exposure to the risk concerned. 

10.  Diseases caused by carbon disulphide. 

All work involving exposure to the risk concerned. 

11.  Occupational cataract due to infra-red 

All work involving exposure to the risk concerned. 

radiations. 

12.  Diseases caused by manganese or its toxic 

All work involving exposure to the risk concerned. 

13. 

compounds. 
Skin diseases caused by physical, 
chemical or biological agents not 
included in other items. 

All work involving exposure to the risk concerned. 

14.  Hearing impairment caused by noise.  All work involving exposure to the risk concerned. 
All work involving exposure to the risk concerned. 
15. 

Poisoning by dinitrophenol or a 
homologue 
or 
dinitrophenol or by the salts of such 
substances. 

by 

substituted  

16.  Diseases caused by beryllium or its toxic 

All work involving exposure to the risk concerned. 

compounds. 

17.  Diseases caused by cadmium or its toxic 

All work involving exposure to the risk concerned. 

compounds. 

18.  Occupational asthma caused by 

All work involving exposure to the risk concerned. 

recognized sensitising agents inherent 
to the work process. 

19.  Diseases caused by fluorine or its toxic 

All work involving exposure to the risk concerned. 

compounds. 

20.  Diseases caused by nitroglycerine or other 

All work involving exposure to the risk concerned. 

nitroacid esters. 

21.  Diseases caused by alcohols and 

All work involving exposure to the risk concerned. 

ketones. 

22.  Diseases caused by asphyxiants: carbon 

All work involving exposure to the risk concerned. 

monoxide, and its toxic derivatives, 
hydrogen sulfide. 
Lung cancer and mesotheliomas caused by 
asbestos. 

23. 

All work involving exposure to the risk concerned. 

38 

 
 
 
 
 
Serial 
No 

(1) 

24. 

Occupational disease 

Employment 

(2) 

(3) 

Primary neoplasm of the epithelial lining of 
the  urinary  bladder  or  the  kidney  or  the 
ureter. 

All work involving exposure to the risk concerned. 

1[25.  Snow blindness in snow bound areas. 

All work involving exposure to the risk concerned. 

26.  Disease due to effect of heat in extreme hot 

All work involving exposure to the risk concerned. 

climate. 

27.  Disease  due  to  effect  of  cold  in  extreme 

cold climate. 

All  work 
concerned.] 

involving  exposure 

to 

the 

risk 

PART C 

1. 

2. 

3. 

4. 

5. 

Pneumoconioses  caused  by  sclerogenic 
mineral  dust  (silicoses,  anthraoo-silicosis, 
asbestosis) and silico-tuberculosis provided 
that  silicosis  is  an  essential  factor  in 
causing the resultant incapacity or death. 

All work involving exposure to the risk concerned. 

Bagassosis 

All work involving exposure to the risk concerned. 

Bronchopulmonary  diseases  caused  by 
sisal  dust 
cotton, 
(Byssionsis), 

flax  hemp 

and 

All work involving exposure to the risk concerned. 

Extrinsic  allergic  alveelitis  caused  by  the 
inhalation of organic dusts. 

Bronchopulmonary  diseases  caused  by 
hard metals. 

All work involving exposure to the risk concerned. 

All work involving exposure to the risk concerned. 

1. Ins. 64 Act 30 of 1995, of 16 (w.e.f. 15-9-95). 

39 

 
 
                                                      
1[SCHEDULE IV  
(See section 4) 

FACTORS FOR WORKING OUT LUMP SUM EQUIVALENT OF COMPENSATION AMOUNT IN CASE OF 
PERMANENT DISABLEMENT AND DEATH. 

Completed years of age on the last birthday of the 
employee immediately preceding the date on which 
the compensation fell due 

1 

Not more than        16…. 

not more than 28…. 

17…. 

18…. 

19…. 

20…. 

21…. 

22…. 

23…. 

24…. 

25…. 

26…. 

27…. 

29…. 

30…. 

31…. 

32…. 

33…. 

34…. 

35…. 

36…. 

37…. 

38…. 

39…. 

40…. 

2. Subs. by Act 22 of 1984, s. 7, for Sch. IV (w.e.f. 1-7-1984). 

40 

Factors 

2 

228.54 

227.49 

226.38 

225.22 

224.00 

222.71 

221.37 

219.95 

218.47 

216.91 

215.28 

213.57 

211.79 

209.92 

207.98 

205.95 

203.85 

201.66 

199.40 

197.06 

194.64 

192.14 

189.56 

186.90 

184.17 

 
 
                                                      
Completed years of age on the last birthday of the 
employee immediately preceding the date on which 
the compensation fell due 

                                   Factors 

2 

181.37 

178.49 

175.54 

172.52 

169.44 

166.29 

163.07 

159.80 

156.47 

153.09 

149.67 

146.20 

142.68 

139.13 

135.56 

131.95 

128.33 

124.70 

121.05 

117.41 

113.77 

110.14 

106.52 

102.93 

99.37.] 

1 

41…. 

42…. 

43…. 

44…. 

45…. 

46…. 

47…. 

48…. 

49… 

50… 

51… 

52… 

53… 

54… 

55… 

56… 

57… 

58… 

59… 

60….. 

61….. 

62….. 

63….. 

64….. 

           65 or more…. 

41 

 
 
 
 
 
 
